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

Natalia Ramondo, Veronica Rappoport and Kim Ruhl

LSE Research Online Documents on Economics from London School of Economics and Political Science, LSE Library

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.

JEL-codes: L81 (search for similar items in EconPapers)
Date: 2016-01-01
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Citations: View citations in EconPapers (73)

Published in Journal of International Economics, 1, January, 2016, 98, pp. 51 - 59. ISSN: 0022-1996

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Related works:
Journal Article: 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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