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The determinants of intrafirm trade: evidence from French firms
journal contribution
posted on 2023-06-08, 23:39 authored by Gregory Corcos, Delphine M Irac, Giordano Mion, Thierry VerdierHow 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.
History
Publication status
- Published
File Version
- Published version
Journal
Review of Economics and StatisticsISSN
0034-6535Publisher
Massachusetts Institute of Technology PressExternal DOI
Issue
3Volume
95Page range
825-838Department affiliated with
- Economics Publications
Full text available
- Yes
Peer reviewed?
- Yes