English (United Kingdom)

https://curated-unify.zendy.io/wp-json/zendy-region/v1/featured_content/oa?rat=en

https://curated-unify.zendy.io/wp-json/zendy-region/v1/highlighted_journal/

Global: Zendy Plus annual

Presents the access of premium content as premium feature

Premium Content

Presents the keyphrase highlighting as premium feature

Keyphrase Highlighting

Presents the summarisation as premium feature

Summarisation

Insights

Presents the pdf analysis as premium feature

PDF Analysis

Presents the zaia usage as premium feature

ZAIA

Global: Zendy Tools annual

Global: Zendy Free Plan

Global: Zendy Tools monthly

Global: Zendy Plus monthly

In this paper we study the vertical integration of the Moroccan industrial sector, its determinants and its effects on the economic performance of the sector and on the economy in general. A key aspect of our analysis is to present the link between the theories of the firm and vertical integration, and the incentives to vertical integration according to two approaches: monopoly theory and efficiency. Next, we also present the choice of integration measure, their determinants and their effects on economical performance. Our findings show that the Moroccan industry is characterized by the weakness and dispersion of the degree of vertical integration. They also show the existence of a correlation between the degree of vertical integration and market factors. Thus, the degree of integration of industries is explained, essentially, by the basic conditions and the structures of the industrial sector, particularly, the degree of concentration, the capital intensity, the level of the barriers to entry, the importance of economies of scale and the rate of sales growth. These factors also reflect the hypotheses of the main explanatory theories of vertical integration, particularly those of monopoly and efficiency. The latter finding reveals, however, a negative correlation between the degree of vertical integration and the profitability of industrial firms. This confirms the idea that integration is usually accompanied by significant costs (bureaucratic costs, costs resulting from changes in incentives) that offset its savings (savings in transaction costs, savings related to monopoly power).

Determinants and Effects of Vertical Integration on the Performance of Moroccan Manufacturing