Abstract
By exploiting a new rich rm{level dataset, this paper focuses on the decision to subcontract production activities (outsourcing) with respect to vertically integrating them. In particular, it aims at investigating which are the main factors related to the decision to either fully or partially outsource production activities taken by mechanical rms located in Emilia Romagna region in Italy. Our empirical analysis consists of two steps. At rst we study the intensity of outsourcing by exploring
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