Trade Within Multinational Boundaries

Laura Alfaro, Paula Conconi, Fariha FK Kamal and Zachary ZK Kroll

No 2025-01, Working Papers ECARES from ULB -- Universite Libre de Bruxelles

Abstract: Traditional theories of firm boundaries predict trade between vertically related units of the same firm. Using novel data that combine a comprehensive map ping of U.S. multinationals’ production networks with their customs filings, we uncover a strong positive relationship between input-output linkages and trade between parents and their affiliates. We also find that intrafirm trade is prevalent, particularly between geographically proximate units: three-quarters of affiliates in North America trade with their U.S. parent. These results overturn prior find ings based on survey data on intrafirm trade. Administrative intrafirm records enable correcting measurement errors in survey data, reconciling traditional the ories with empirical evidence.

Keywords: multinational enterprises; intrafirm trade; input-output linkage (search for similar items in EconPapers)
JEL-codes: D23 F14 F23 L20 (search for similar items in EconPapers)
Date: 2026-01-01
New Economics Papers: this item is included in nep-iaf, nep-int and nep-mac
References: Add references at CitEc
Citations:

Published by:

Downloads: (external link)
https://dipot.ulb.ac.be/dspace/bitstream/2013/401477/3/WP202601ACKK.pdf Œuvre complète ou partie de l'œuvre (application/pdf)

Related works:
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: https://EconPapers.repec.org/RePEc:eca:wpaper:2013/401477

Ordering information: This working paper can be ordered from
http://hdl.handle.ne ... lb.ac.be:2013/401477

Access Statistics for this paper

More papers in Working Papers ECARES from ULB -- Universite Libre de Bruxelles Contact information at EDIRC.
Bibliographic data for series maintained by Benoit Pauwels ().