Intra-firm trade and product contractibility (Long Version)

Andrew Bernard and Stephen Redding

LSE Research Online Documents on Economics from London School of Economics and Political Science, LSE Library

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

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
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Citations: View citations in EconPapers (21)

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http://eprints.lse.ac.uk/48899/ Open access version. (application/pdf)

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:ehl:lserod:48899

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