The determinants of intrafirm trade: evidence from French firms

Corcos, Gregory, Irac, Delphine M, Mion, Giordano and Verdier, Thierry (2013) The determinants of intrafirm trade: evidence from French firms. Review of Economics and Statistics, 95 (3). pp. 825-838. ISSN 0034-6535

[img] PDF - Published Version
Download (276kB)

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.

Item Type: Article
Schools and Departments: School of Business, Management and Economics > Economics
Subjects: H Social Sciences
Depositing User: Tahir Beydola
Date Deposited: 04 Dec 2015 14:33
Last Modified: 06 Mar 2017 14:20
URI: http://sro.sussex.ac.uk/id/eprint/58664

View download statistics for this item

📧 Request an update