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The Determinants of Intra-Firm Trade: In Search for Export-Import Magnification Effects

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  • Egger, Peter
  • Pfaffermayr, Michael

Abstract

This paper studies the determinants of Austrian bilateral intra-firm trade in a panel of industry-level intra-firm goods trade flows. Economic size, unit labor costs and the magnification effects originating from multiple border crossing of sequentially finished products are found to be the most important determinants of trade within multinational firms. Especially, our evidence lends support to multiple border crossing of sequentially finished products, an argument that recently has been put forward in the outsourcing literature.

Suggested Citation

  • Egger, Peter & Pfaffermayr, Michael, 2005. "The Determinants of Intra-Firm Trade: In Search for Export-Import Magnification Effects," Kiel Working Papers 1247, Kiel Institute for the World Economy (IfW Kiel).
    • Handle: RePEc:zbw:ifwkwp:1247
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    Cited by:

    1. Patricia Walter & Rene Dell`mour, 2010. "Firm level analysis of international trade in services," IFC Working Papers 4, Bank for International Settlements.
    2. Liu, Zhiyuan & Xu, Yue & Wang, Peijie & Akamavi, Raphaël, 2016. "A pendulum gravity model of outward FDI and export," International Business Review, Elsevier, vol. 25(6), pages 1356-1371.
    3. CHEVASSUS-LOZZA Emmanuelle & GALLIANO Danielle, 2006. "Intra-firm trade and European integration: Evidences from the French multinational agribusiness," Cahiers du GRES (2002-2009) 2006-24, Groupement de Recherches Economiques et Sociales.
    4. Yap, Josef T. & Aldaba, Rafaelita M., 2009. "Investment and Capital Flows: Implications of the ASEAN Economic Community," Discussion Papers DP 2009-01, Philippine Institute for Development Studies.
    5. Jagdambe, S., 2018. "Impact of AIFTA on Agriculture Trade Creation & Trade Diversion: Gravity Model Analysis," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 276046, International Association of Agricultural Economists.
    6. Holmes, Peter & Lopez-Gonzalez, Javier, 2011. "The Nature and Evolution of Vertical Specialisation: What is the Role of Preferential Trade Agreements?," Papers 222, World Trade Institute.

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