Intra-Firm Trade and Product Contractibility (Long Version)

Andrew Bernard, J. Jensen (), Stephen Redding and Peter Schott

CEP Discussion Papers from Centre for Economic Performance, LSE

Abstract: This paper examines the determinants of intra-firm trade in U.S. imports using detailed countryproduct data. We create a new measure of product contractibility based on the degree of intermediation in international trade for the product. We find important roles for the interaction of country and product characteristics in determining intra-firm trade shares. Intra-firm trade is high for products with low levels of contractability sourced from countries with weak governance, for skillintensive products from skill-scarce countries, and for capital-intensive products from capitalabundant countries.

Keywords: Related party trade; imports; contract theory; contractibility; intermedication; human capital; physical capital (search for similar items in EconPapers)
JEL-codes: F10 F23 L14 L23 (search for similar items in EconPapers)
Date: 2010-05
New Economics Papers: this item is included in nep-bec and nep-int
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Citations: View citations in EconPapers (26)

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Related works:
Working Paper: Intra-firm trade and product contractibility (Long Version) (2010)
Working Paper: Intra-firm Trade and Product Contractibility (Long Version) (2010)
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Persistent link: https://EconPapers.repec.org/RePEc:cep:cepdps:dp0978

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