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- Title
THE DETERMINANTS OF INTRAFIRM TRADE: EVIDENCE FROM FRENCH FIRMS.
- Authors
Corcos, Gregory; Irac, Delphine M.; Mion, Giordano; Verdier, Thierry
- Abstract
How well does the theory of the firm explain the choice between intrafirm and arm's-length trade? This paper uses firm-level import data from France to look into this question. We find support for three key predictions of property rights theories of the multinational firm. Intrafirm imports are more likely in capital- and skill-intensive firms, in highly productive firms, and from countries with well-functioning judicial institutions. We bridge previous aggregate findings with our investigation by decomposing intrafirm imports into an extensive and intensive margin and uncover interesting patterns in the data that require further theoretical investigation.
- Subjects
INTERNATIONAL trade; MATHEMATICAL models; PROPERTY rights; THEORY of the firm; IMPORTS; FOREIGN investments; INTERNATIONAL business enterprises
- Publication
Review of Economics & Statistics, 2013, Vol 95, Issue 3, p825
- ISSN
0034-6535
- Publication type
Article
- DOI
10.1162/REST_a_00293