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

Ramondo, Natalia, Rappoport, Veronica and Ruhl, Kim J. (2015) Intrafirm trade and vertical fragmentation in U.S. multinational corporations. Journal of International Economics, 98 . pp. 51-59. ISSN 0022-1996

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Abstract

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:	http://www.journals.elsevier.com/journal-of-intern...
Additional Information:	© 2015 Elsevier B.V.
Library of Congress subject classification:	H Social Sciences > HF Commerce
Sets:	Research centres and groups > Centre for Economic Performance (CEP) Research centres and groups > Managerial Economics and Strategy Group
Funders:	National Science Foundation
Projects:	SES-0536970
Date Deposited:	17 Aug 2015 10:36
URL:	http://eprints.lse.ac.uk/63197/

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