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

Natalia Ramondo, Veronica Rappoport and Kim Ruhl

No 21472, NBER Working Papers from National Bureau of Economic Research, Inc

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.

JEL-codes: F0 (search for similar items in EconPapers)
Date: 2015-08
New Economics Papers: this item is included in nep-ger and nep-int
Note: ITI
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Citations: View citations in EconPapers (7)

Published as Ramondo, Natalia & Rappoport, Veronica & Ruhl, Kim J., 2016. "Intrafirm trade and vertical fragmentation in U.S. multinational corporations," Journal of International Economics, Elsevier, vol. 98(C), pages 51-59.

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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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