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- W102435356 abstract "Multinational and exporting firms play a key role in trade patterns. To highlight the importance of intra-firm trade in share of world trade, this paper develops a model of trade and intra-firm trade with heterogeneous firms. In this set up, trade costs apply to both exports and multinational production because both involve transportation. However, the magnitude will differ. The introduction of intra-firm trade generates a complementarity between FDI and Exports. Using data for 1999-2004, we test the gravity equations delivered by the model. Quantitatively, we find that exports within the boundaries of the firms are less sensitive to geographical barriers than arm's length trade." @default.
- W102435356 created "2016-06-24" @default.
- W102435356 date "2013-01-01" @default.
- W102435356 modified "2023-09-23" @default.
- W102435356 title "Intrafirm and Arm’s-Length Trade: How Distance Matters" @default.
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- W102435356 doi "https://doi.org/10.7551/mitpress/9716.003.0013" @default.
- W102435356 hasPublicationYear "2013" @default.
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