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. CEP Discussion Papers, CEPDP1371. Centre for Economic Performance, London School of Economics and Political Science, London, UK.

Preview

PDF - Published Version Download (622Kb) | Preview

• Published Item

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
Library of Congress subject classification:	H Social Sciences > HD Industries. Land use. Labor H Social Sciences > HF Commerce
Journal of Economic Literature Classification System:	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
Sets:	Research centres and groups > Centre for Economic Performance (CEP)
Identification Number:	CEPDP1371
Funders:	Economic and Social Research Council (ESRC), National Science Foundation
Projects:	SES-0536970
Date Deposited:	01 Oct 2015 11:11
URL:	http://eprints.lse.ac.uk/63831/

Actions (login required)

Record administration - authorised staff only