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Definition: Vertically integrated enterprise


A vertically integrated enterprise is one in which different stages of production, which are usually carried out by different enterprises, are carried out in succession by different parts of the same enterprise. The output of one stage becomes an input into the next stage, only the output from the final stage being actually sold on the market.

This definition is used both in SNA 1993 (§ 5.31) and in SNA 2008 (§ 5.23). <a href=""></a> <a href=""><a href="" target="_blank">United Nations, System of National Accounts (SNA) 1993, United Nations, New York, 1993</a></a>
European Commission (Eurostat), International Monetary Fund (IMF), Organisation for Economic Co-operation and Development (OECD), United Nations (Statistics Division), World Bank, "System of National Accounts 2008", United Nations, New York, 2009