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 Kiel Institute for the World Economy in its series Economics Discussion Papers with number 2007-18.
Date of creation: 2007
Date of revision:
Multinational Firms; Intra-firm Trade; Intermediate Products; Vertical Production Networks; Horizontal FDI;
Other versions of this item:
- Michel Fouquin & Laurence Nayman & Laurent Wagner, 2006. "Vertical Production Networks: Evidence from France," Working Papers 2006-18, CEPII research center.
- L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance
- F1 - International Economics - - Trade
- F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
This paper has been announced in the following NEP Reports:
- NEP-ALL-2007-06-02 (All new papers)
- NEP-EEC-2007-06-02 (European Economics)
- NEP-INT-2007-06-02 (International Trade)
- NEP-LAB-2007-06-02 (Labour Economics)
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