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Multinational Firms and the Factor Intensity of Trade

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  • Robert E. Lipsey
  • Merle Yahr Weiss

Abstract

In studying the impact of direct investment on the amount, direction, and composition of international trade we have found that the multinational firm fits uncomfortably into the usual theory of trade and capital movements. We attempt here to introduce the fact of the existence of multinational firms into the explanation of trade flows and particularly into the long-running debate over the relations among factor abundance, factor prices and trade.

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Bibliographic Info

Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 0008.

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Date of creation: Sep 1973
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Handle: RePEc:nbr:nberwo:0008

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References

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  1. Irving B. Kravis, 1956. ""Availability" and Other Influences on the Commodity Composition of Trade," Journal of Political Economy, University of Chicago Press, vol. 64, pages 143.
  2. Hal B. Lary, 1968. "Imports of Manufactures from Less Developed Countries," NBER Books, National Bureau of Economic Research, Inc, number lary68-1.
  3. Caves, Richard E, 1971. "International Corporations: The Industrial Economics of Foreign Investment," Economica, London School of Economics and Political Science, vol. 38(149), pages 1-27, February.
  4. Peter B. Kenen, 1965. "Nature, Capital, and Trade," Journal of Political Economy, University of Chicago Press, vol. 73, pages 437.
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Cited by:
  1. Gregory Schmid & Owen Phillips, 1980. "Textile trade and the pattern of economic growth," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 116(2), pages 294-306, June.

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