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Intra-firm Trade and Foreign Direct Investment : An Empirical Analysis of French Firms

Author

Listed:
  • Séverine Chédor

    (CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique)

  • Jean-Louis Mucchielli

    (UP1 UFR06 - Université Paris 1 Panthéon-Sorbonne - UFR Gestion & économie d'entreprise - UP1 - Université Paris 1 Panthéon-Sorbonne)

  • Isabelle Soubaya

    (CERESUR - Centre d'Etudes et de Recherches Economique et Sociales de l'Université de La Réunion - UR - Université de La Réunion, CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique)

Abstract

Moreover, international trade is increasingly dominated by multinational firms. Actually, intra-firm trade (i.e. trade between a parent company and its affiliates) represents, in 1998 (UNTCAD 1999), 30 per cent of world trade and also 30 per cent of total French trade2 (Mathieu 1998). In that context, it seems necessary to divide global trade into two classes: intra-firm and inter-firm trade (or arm's length transactions). The relationship between FDI and each of these categories of trade has to be tested in order to highlight the potential impact of establishment of affiliates abroad on trade. Our paper deals with this concern for French intra-firm trade, which has never been explored in these terms. Indeed, individual databases for French multinational firms are exploited here for the first time.

Suggested Citation

  • Séverine Chédor & Jean-Louis Mucchielli & Isabelle Soubaya, 2001. "Intra-firm Trade and Foreign Direct Investment : An Empirical Analysis of French Firms," Post-Print hal-03668218, HAL.
  • Handle: RePEc:hal:journl:hal-03668218
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