Intra-firm Trade and Product Contractibility

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

No 7927, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: This paper examines the determinants of intra-firm trade in U.S. imports using detailed country-product 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 skill-intensive products from skill-scarce countries, and for capital-intensive products from capital-abundant countries.

Keywords: Incomplete contracts; Intermediation; Related party trade (search for similar items in EconPapers)
JEL-codes: F10 F23 L14 L23 (search for similar items in EconPapers)
Date: 2010-07
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Citations: View citations in EconPapers (41)

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Related works:
Working Paper: INTRA-FIRM TRADE AND PRODUCT CONTRACTIBILITY (2013)
Journal Article: Intrafirm Trade and Product Contractibility (2010)
Working Paper: Intrafirm trade and product contractibility (2010)
Working Paper: Intra-Firm Trade and Product Contractibility (2010)
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