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  • Vertical Integration as a means of increasing efficiency and competetiveness

Vertical Integration as a means of increasing efficiency and competetiveness

Research areas: Social Transformation

Duration: September 2009 - April 2010

Vertical Integration as a means of increasing efficiency and competetiveness

The research aims at exploring the effect of vertical integration with involvement of domestic or foreign capital. It is generally agreed, that stimulation of vertical integration along with involvement of foreign capital is an important driving force of economic development and has a positive effect on companies’ performance. To date, existing literature analyzed either the effect of vertical integration or foreign direct investment on companies’ performance without considering both factors combined.

The main feature of this research is to analyze both factors in combination, as well as to study their impact on the overall performance of enterprises. If previous researches were mainly focused on industry-level only and provided ambiguous results, this research covers the company-level effect of involvement of either domestic or foreign capital into the process of vertical integration.

It is expected, that the results of the research will contribute to developing the industrial policy of Uzbekistan and relevant policy recommendations.