Intrafirm trade and vertical fragmentation in U.S. multinational corporations

Natalia Ramondo, Veronica Rappoport and Kim Ruhl

Journal of International Economics, 2016, vol. 98, issue C, 51-59

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.

Keywords: Foreign affiliate; Parent firm; Foreign direct investment (search for similar items in EconPapers)
Date: 2016
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Citations: View citations in EconPapers (82)

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Related works:
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)
Working Paper: Intrafirm Trade and Vertical Fragmentation in U.S. Multinational Corporations (2015)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:inecon:v:98:y:2016:i:c:p:51-59

DOI: 10.1016/j.jinteco.2015.08.002

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