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

Ramondo, Natalia, Rappoport, Veronica ORCID: 0009-0007-3665-4304 and Ruhl, Kim J. (2015) Intrafirm trade and vertical fragmentation in U.S.multinational corporations. CEP Discussion Papers (CEPDP1371). London School of Economics and Political Science. Centre for Economic Performance, London, UK.

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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 low of goods.

Item Type:	Monograph (Discussion Paper)
Official URL:	http://cep.lse.ac.uk/_new/publications/series.asp?...
Additional Information:	© 2015 The Authors
Divisions:	Centre for Economic Performance
Subjects:	H Social Sciences > HD Industries. Land use. Labor H Social Sciences > HF Commerce
JEL classification:	F - International Economics > F1 - Trade > F12 - Models of Trade with Imperfect Competition and Scale Economies F - International Economics > F1 - Trade > F14 - Country and Industry Studies of Trade L - Industrial Organization > L1 - Market Structure, Firm Strategy, and Market Performance > L11 - Production, Pricing, and Market Structure; Size Distribution of Firms L - Industrial Organization > L2 - Firm Objectives, Organization, and Behavior > L25 - Firm Performance: Size, Diversification and Scope, Age, Profit, and Sales
Date Deposited:	01 Oct 2015 11:11
Last Modified:	11 Dec 2024 19:18
Projects:	SES-0536970
Funders:	Economic and Social Research Council, National Science Foundation
URI:	http://eprints.lse.ac.uk/id/eprint/63831

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