Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/55652
Authors: 
Díez, Federico J.
Year of Publication: 
2010
Series/Report no.: 
Working paper series // Federal Reserve Bank of Boston 10-4
Abstract: 
This paper studies the effects of tariffs on intra-firm trade. Building on the Antràs and Helpman (2004) North-South theoretical framework, I show that higher Northern tariffs reduce the incentives for outsourcing and offshoring, while higher Southern tariffs have the opposite effects. I also show that increased offshoring and outsourcing imply an increase in the ratio of Northern intra-firm imports to total imports, which is an empirically testable prediction. Using a highly disaggregated dataset of U.S. (the North) imports and relevant tariffs, I find robust evidence to support the model´s predictions.
Subjects: 
Intra-firm trade
offshoring
outsourcing tariffs
JEL: 
F10
F23
L22
L23
Document Type: 
Working Paper

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