The Determinants of Intra-Firm Trade

Thierry Verdier, Giordano Mion, Delphine Irac and Gregory Corcos

No 7530, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: How successful is the theory of the firm in explaining intra-firm trade? To answer this question we exploit a unique dataset of 1,141,393 French import transactions, spanning across firm, countries and products in 1999, and reporting whether a transaction is intra-firm. Overall, we find support for the main predictions of the partial equilibrium property-rights approach and further deliver facts that can be useful for further theoretical development. We document substantial within-industry heterogeneity while providing evidence of the importance of the firm dimension of sourcing choices as well as of the key distinction between the extensive and intensive margins.

Keywords: Extensive margin; Firm heterogeneity; Incomplete contracts; Intensive margin; Internationalization strategies; Intra-firm trade; Outsourcing; Quality of institutions (search for similar items in EconPapers)
JEL-codes: F12 F19 F23 (search for similar items in EconPapers)
Date: 2009-11
New Economics Papers: this item is included in nep-com and nep-int
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (11)

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Working Paper: The Determinants of Intra-Firm Trade (2008)
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