Factor Prices and Factor Substitution in U.S. Firms' Manufacturing Affiliates Abroad
AbstractUsing confidential individual firm data from the Bureau of Economic Analysis survey of U.S. firms' manufacturing operations abroad, we investigate the determinants of capital intensity in affiliate operations. Host country labor cost, the scale of host country production, and the capital intensity of the parent firm's production in the United States, are all significant influences. The parent's capital intensity is the strongest and most consistent determinant of affiliate capital intensity. Affiliates that export are more sensitive to these factors in their choice of factor proportions than affiliates that sell only in their host countries.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 10442.
Date of creation: Apr 2004
Date of revision:
Contact details of provider:
Postal: National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.
Web page: http://www.nber.org
More information through EDIRC
Find related papers by JEL classification:
- F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
- J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
This paper has been announced in the following NEP Reports:
- NEP-ALL-2004-06-07 (All new papers)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Robert E. Lipsey & Irving Kravis, 1982.
"Do Multinational Firms Adapt Factor Proportions to Relative Factor Prices?,"
in: Trade and Employment in Developing Countries, vol. 2: Factor Supply and Substitution, pages 215-256
National Bureau of Economic Research, Inc.
- Robert E. Lipsey & Irving B. Kravis & Romualdo A. Roldan, 1983. "Do Multinational Firms Adapt Factor Proportions To Relative Factor Prices?," NBER Working Papers 0293, National Bureau of Economic Research, Inc.
- Helg, Rodolfo & Tajoli, Lucia, 2005.
"Patterns of international fragmentation of production and the relative demand for labor,"
The North American Journal of Economics and Finance,
Elsevier, vol. 16(2), pages 233-254, August.
- Rodolfo Helg, 2005. "Patterns of international fragmentation of production and the relative demand for labor," LIUC Papers in Economics 167, Cattaneo University (LIUC).
- Chen, Tain-Jy, 1992. "Technical Change and Technical Adaptation of Multinational Firms: The Case of Taiwan's Electronics Industry," Economic Development and Cultural Change, University of Chicago Press, vol. 40(4), pages 867-81, July.
- Raymond Mataloni, Jr., 2011. "The Productivity Advantage and Global Scope of U.S. Multinational Firms," Working Papers 11-23, Center for Economic Studies, U.S. Census Bureau.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ().
If references are entirely missing, you can add them using this form.