Intrafirm Trade and Vertical Fragmentation in U.S. Multinational Corporations

Natalia Ramondo, Veronica Rappoport and Kim Ruhl

CEP Discussion Papers from Centre for Economic Performance, LSE

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.

Keywords: Intrafirm trade; multinational corporations; international value chains (search for similar items in EconPapers)
JEL-codes: F12 F14 L11 L25 (search for similar items in EconPapers)
Date: 2015-09
New Economics Papers: this item is included in nep-bec, nep-com, nep-ind, nep-int and nep-net
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Citations: View citations in EconPapers (5)

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Related works:
Journal Article: Intrafirm trade and vertical fragmentation in U.S. multinational corporations (2016)
Working Paper: Intrafirm trade and vertical fragmentation in U.S. multinational corporations (2016)
Working Paper: Intrafirm trade and vertical fragmentation in U.S.multinational corporations (2015)
Working Paper: Intrafirm Trade and Vertical Fragmentation in U.S. Multinational Corporations (2015)
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Persistent link: https://EconPapers.repec.org/RePEc:cep:cepdps:dp1371

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