This paper studies the evolution and determinants of US interfirm trade between 1989-98. We will extend preview: similar econometric testing not only by using more recent data but also by considering inter-country differences In addition to inter-sectoral variation of interfirm trade. At the sectoral revet relevant factors appear to be technology intensity, the level of vertical integration, economies of scale and lh' Ie?eI of international production, as well as the impact of the geographic concentration of US parent firms. At the country level, the size of the market and some country specificities appear to favor interfirm trade while increasing levels of the tax rate on profits of th/ foreign country and economic distance disincentives this trade.
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Paper provided by Department of Economics at the School of Economics and Management (ISEG), Technical University of Lisbon. in its series Working Papers with number
2002/07.
Length: Date of creation: 2002 Date of revision: Handle: RePEc:ise:isegwp:wp72002
Contact details of provider: Postal: Department of Economics, School of Economics and Management (ISEG), Technical University of Lisbon, Rua do Quelhas 6, 1200-781 LISBON, PORTUGAL Web page: http://www.iseg.utl.pt/departamentos/economia/
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Find related papers by JEL classification: F10 - International Economics - - Trade - - - General F14 - International Economics - - Trade - - - Country and Industry Studies of Trade F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
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