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Intrafirm trade and vertical fragmentation in U.S. multinational corporations

Ramondo, Natalia, Rappoport, Veronica ORCID: 0009-0007-3665-4304 and Ruhl, Kim J. (2016) Intrafirm trade and vertical fragmentation in U.S. multinational corporations. Journal of International Economics, 98. 51 - 59. ISSN 0022-1996

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Identification Number: 10.1016/j.jinteco.2015.08.002


Using firm-level data, we document two new facts regarding intrafirm trade and the activities of the foreign affiliates of U.S. multinational corporations. First, intrafirm trade is concentrated among a small number of large affiliates within large multinational corporations; the median affiliate ships nothing to the rest of the corporation. Second, we find that the input-output coefficient linking the parent’s and affiliate’s industries of operation—a characteristic commonly associated with production fragmentation— is not related to a corresponding intrafirm flow of goods.

Item Type: Article
Official URL:
Additional Information: © 2015 Elsevier B.V.
Divisions: Centre for Economic Performance
Subjects: H Social Sciences > HF Commerce
Date Deposited: 17 Aug 2015 10:36
Last Modified: 10 Jul 2024 02:27
Projects: SES-0536970
Funders: National Science Foundation

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