Vertical Production Networks: Evidence from France
AbstractThis paper investigates the determinants of intra-firm trade of multinational firms located in France, using data on French companies. Results on the vertical pattern of production networks differ according to the affiliates? location. Lower wage and transportation costs in the developing countries increase, as expected, the vertical segmentation of production. In the developed countries, lower trade and unit wage costs, and hence, a strong and positive labour productivity matter a lot in explaining French MNCs? preferences. Among the other variables of interest, partnership and market potential have been given special attention. The results substantiate a mix of vertical and horizontal FDI, mainly when we separate out capital intensive from labour intensive intermediate products. --
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Bibliographic InfoPaper provided by CEPII research center in its series Working Papers with number 2006-18.
Date of creation: Nov 2006
Date of revision:
International firms; Globalization; Intra-industry trade; segmentation; Productivity; International comparison; FDI; Factor costs;
Other versions of this item:
- Wagner, Laurent & Nayman, Laurence & Fouquin, Michel, 2007. "Vertical Production Networks: Evidence from France," Economics Discussion Papers 2007-18, Kiel Institute for the World Economy.
- F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
- F10 - International Economics - - Trade - - - General
- L10 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - General
This paper has been announced in the following NEP Reports:
- NEP-ALL-2006-12-16 (All new papers)
- NEP-EFF-2006-12-16 (Efficiency & Productivity)
- NEP-INT-2006-12-16 (International Trade)
- NEP-NET-2006-12-16 (Network Economics)
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