Intra-Firm Trade and Product Contractibility

Andrew Bernard, J. Jensen (), Stephen Redding and Peter Schott

No WP10-3, Working Paper Series from Peterson Institute for International Economics

Abstract: This paper examines the determinants of intra-firm trade in US imports using detailed country-product data. We create a new measure of product contractibility based on the degree of intermediation in international trade for the product. We find important roles for the interaction of country and product characteristics in determining intra-firm trade shares. Intra-firm trade is high for products with low levels of contractibility sourced from countries with weak governance, for skill-intensive products from skill-scarce countries, and for capital-intensive products from capital-abundant countries.

Keywords: Related party trade; imports; contract theory; contractibility; intermediation; human capital; physical capital (search for similar items in EconPapers)
JEL-codes: F14 F23 L14 L22 L23 L24 (search for similar items in EconPapers)
Date: 2010-05
References: Add references at CitEc
Citations: View citations in EconPapers (46)

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Related works:
Working Paper: INTRA-FIRM TRADE AND PRODUCT CONTRACTIBILITY (2013)
Journal Article: Intrafirm Trade and Product Contractibility (2010)
Working Paper: Intra-firm Trade and Product Contractibility (2010)
Working Paper: Intrafirm trade and product contractibility (2010)
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Persistent link: https://EconPapers.repec.org/RePEc:iie:wpaper:wp10-3

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