Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/289997 
Year of Publication: 
2022
Series/Report no.: 
IDB Working Paper Series No. IDB-WP-1369
Publisher: 
Inter-American Development Bank (IDB), Washington, DC
Abstract: 
Intra-firm trade, from parents to affiliates, has been combined with standard models of multinational production (MP) to deliver gravity-style predictions for foreign affiliates' sales. Nonetheless, the evidence shows that intra-firm trade is concentrated among a small set of large multinational firms. Using firm-level data from 35 countries, we document that only firms belonging to multinational corporations (MNCs) in the upper tail of the firm's size distribution are significantly affected by the distance to their parents. We present a simple framework featuring MNCs' selection into intra-firm trade and derive the analytical gravity equations that are consistent with the empirical findings.
Subjects: 
Intra-firm trade
Multinational production
JEL: 
F12
F23
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by-nc-nd Logo
Document Type: 
Working Paper

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.