The Role of Product-Specific Factors in Intra-Firm Trade of U.S. Manufacturing Multinational Corporations

Kang Rae Cho
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Kang Rae Cho: Pennsylvania State University

Journal of International Business Studies, 1990, vol. 21, issue 2, 319-330

Abstract: This study examines the role of major product-specific factors in the product patterns of intra-firm trade of U.S. manufacturing MNCs. Using pooled time-series (1982–86), cross-sectional (nineteen products) regression analysis, this study finds that the technology intensity of a product has a strong positive effect on the propensity of the product to intra-firm trade. In contrast, the economies of scale level appears to have a constraining effect on the propensity. Finally, the vertical integration intensity and the international production intensity are found to have no significant bearings on the propensity.© 1990 JIBS. Journal of International Business Studies (1990) 21, 319–330

Date: 1990
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