Abstract
The Major Objectives of this study is to measure the degree of
vertical integration (VI) in Jordanian industries classified by the 4-
digits code of the ISIC, and to examine the relationship between
such integration and both economic efficiency and monopoly
power.
The results of the study indicate that the degree of VI among
Jordanian industries varies for some extent from one group to
another. But it is more important to mention that a low degree of
VI has been found among many important industries. These are
the grain mill products, the prepared animal feed, the
manufacture of paints, the petroleum refineries, the manufac-
ture of electrical industrial machinery and apparatus, and the
manufacture of spare parts for motor vehicles. On the other hand,
a highest degree of VI among other group has been cleared. This
group includes the slaughtering, preparing and preserving meat,
Tobacco, and upholstery industries.
The study also shows that the VI increases both profits and
economic efficiency and reduces costs rather than increasing the
monopoly power. Accordingly, the VI is desirable from a social
viewpoint, and moreover, it should be encouraged to include the
various economic sectors