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U.S. Intra-Firm International Trade

Author

Listed:
  • Khan, Haider
  • Akram, Tanweer
  • Holladay, J. Scott

Abstract

Intra-firm trade is an important component of United States’ international trade with the rest of the world. The stylized facts about U.S. intra-firm trade reveal some interesting patterns. Intra-firm trade is increasing with newly developed countries particularly in Asia and Eastern Europe, there is an intra-firm trade deficit that adds to the overall trade deficit and intra-firm trade with China is a large and growing part of overall intra-firm trade. These facts are consistent with a horizontal multinational trade model. The high share of intra-firm transactions in international trade has implications for the trade deficit and tax policy

Suggested Citation

  • Khan, Haider & Akram, Tanweer & Holladay, J. Scott, 2008. "U.S. Intra-Firm International Trade," MPRA Paper 7612, University Library of Munich, Germany, revised 2008.
    • Handle: RePEc:pra:mprapa:7612
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    File URL: https://mpra.ub.uni-muenchen.de/7612/1/MPRA_paper_7612.pdf
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    References listed on IDEAS

    as
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    2. James R. Markusen, 2004. "Multinational Firms and the Theory of International Trade," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262633078, April.
    3. Ignatius J. Horstmann & James R. Markusen, 2021. "Endogenous market structures in international trade (natura facit saltum)," World Scientific Book Chapters, in: BROADENING TRADE THEORY Incorporating Market Realities into Traditional Models, chapter 2, pages 25-45, World Scientific Publishing Co. Pte. Ltd..
    4. David J. TEECE, 2008. "TRANSACTIONS COST ECONOMICS AND THE MULTINATIONAL ENTERPRISE: An Assessment," World Scientific Book Chapters, in: The Transfer And Licensing Of Know-How And Intellectual Property Understanding the Multinational Enterprise in the Modern World, chapter 20, pages 427-451, World Scientific Publishing Co. Pte. Ltd..
    5. Martin, Stephen, 1991. "Direct foreign investment in the United States," Journal of Economic Behavior & Organization, Elsevier, vol. 16(3), pages 283-293, December.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Intra-firm trade; related party trade; international trade; multinational corporations; transnational corporations; foreign direct investment;
    All these keywords.

    JEL classification:

    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade

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