Economics at your fingertips  

Structure du commerce intra-firme, intégration des marchés et harmonisation fiscale

Pierre Blanchard, Carl Gaigne and Claude Mathieu ()

Revue économique, 2010, vol. 61, issue 5, 895-915

Abstract: This paper proposes a theoretical analysis of the structure of trade within multinational firms. A two country model is developed in which a multinational firm incurs different profit tax rates between the two countries in which its affiliates are located, and trade-related costs. We determine the conditions under which the multinational firm engages in vertical and/or horizontal intra-firm trade. We show that intra-firm vertical and horizontal occurs when the tax rate on profits is lower or higher abroad. Such a configuration holds if the production costs of the final product is higher in the foreign country and trade barriers are relatively high. We then show that a fall in tariff and non tariff barriers reduces the volume of trade in intermediate goods while it raises trade in final product. Finally, tax harmonization between countries has an ambiguous effect on the volume of intra-firm. Classification JEL : F23, F11

JEL-codes: F11 F23 (search for similar items in EconPapers)
Date: 2010
References: Add references at CitEc
Citations: Track citations by RSS feed

Downloads: (external link) (application/pdf) (text/html)

Related works:
Working Paper: Structure du commerce intra-firme, intégration des marchés et harmonisation fiscale (2010)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

Access Statistics for this article

More articles in Revue économique from Presses de Sciences-Po
Bibliographic data for series maintained by Jean-Baptiste de Vathaire ().

Page updated 2023-05-29
Handle: RePEc:cai:recosp:reco_615_0895