Vertical Integration


Vertical Integration

According to policy-makers, vertical integration is one of the important tools in realization of national strategy for innovation, modernization and economic development. It is often considered as one of the main factors of reducing of production costs and improving productivity performance and competitiveness of enterprises.

However, although the argument of positive effect of vertical integration on firm performance is popular among policy-makers, it is still not clear what effect this type of integration will have on firm performance in Uzbekistan. The presence of such effect has not been explored in the existing research literature.

How this effect varies across the industries? Is it efficient to deepen the process of vertical integration in Uzbekistan and what are the possible directions of this process?

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