TOULAN, Omar

The impact of market liberalization on vertical scope : the case of Argentina

This paper analyzes the impact of market liberalization on the vertical scope of firms. Using the case of Argentina, it is shown how the opening of the economy can improve contracting abilities and heighten competition, increasing the ability and incentive of firms to outsource. Survey findings support the main hypothesis as well as the specific importance of reforms relatin to inflation, import costs, and heightened demand standards in increasing the use of outsourcing. A case study of the steel producer Siderar, highlights that while firms may reduce their presence in peripheral activities, they may also increase their presence in core areas so as to increase their value proposition


Vertical Integration
Scope
Outsourcing
Market Liberalization
Emerging Markets
Argentina