Trade cost, technology and multinational production

Coûts commerciaux, technologie et production multinationale

Sophia Praetorius
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Sophia Praetorius: ECON - Département d'économie (Sciences Po) - Sciences Po - Sciences Po - CNRS - Centre National de la Recherche Scientifique

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Abstract: This dissertation examines how multinational firms navigate costs and frictions in global production decisions. Chapter 1 analyzes inter-firm collaboration in production technologies using a structural multinational production model. I show that specialized capital creates constraints on the optimal assembly allocation, and that firms can overcome these frictions through technological collaboration. In the counterfactual analyses, I show how trade and technology-restricting policies differentially affect spatial production allocation. In contrast, Chapter 2 investigates the impact of trade policy in global value chains using plant-level data. Consistent with theory, trade costs reduce imports, economic activity, and influence location choices, with effects escalating along production chains and generating spillovers across industries and countries. Finally, Chapter 3 addresses methodological challenges in assessing multinational firms' responses to shocks in their capital. As climate change increasingly threatens global production, l demonstrate that widely used data sources and identification methods can lead to substantially different results and thus conclusions. I provide guidance on available options and their limitations for addressing these research questions. Together, these findings reveal the complexity of global production and underscore the importance of properly accounting for costs and frictions in understanding multinational firm behavior.

Keywords: Multinational enterprise behaviour; Global value chains; Trade policy; Multinational production models; Comportement des entreprises multinationales; Chaînes de valeur mondiales; Politique commerciale; Modèles de production multinationaux (search for similar items in EconPapers)
Date: 2025-09-25
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Published in Economics and Finance. Institut d'études politiques de paris - Sciences Po, 2025. English. ⟨NNT : 2025IEPP0019⟩

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