INTRA-FIRM TRADE AND PRODUCT CONTRACTIBILITY
March 2013
Working Paper Number:
CES-13-12
Abstract
This paper examines the determinants of intra-firm trade in U.S. 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.
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:
investment,
market,
import,
export,
foreign trade,
product,
international trade,
exporter,
multinational,
importing,
contract,
imported,
trading,
importer,
sourcing,
firms import,
firms trade
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National Science Foundation,
Ordinary Least Squares,
National Bureau of Economic Research,
Harvard University,
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Quarterly Journal of Economics,
Establishment Micro Properties,
Foreign Direct Investment,
Journal of Political Economy,
University of Chicago,
World Bank,
Georgetown University,
Journal of Economic Literature,
Postal Service,
Research Data Center,
North American Industry Classification System,
Harmonized System,
Longitudinal Firm Trade Transactions Database,
North American Industry Classi,
Journal of International Economics
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