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Determinants of intra‐firm trade: Evidence from foreign affiliates in Sub‐Saharan Africa

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  • Sotiris Blanas
  • Adnan Seric

Abstract

By exploiting a unique sample of foreign affiliates in Sub‐Saharan Africa, we study previously examined and unexamined firm‐level determinants of intra‐firm trade. We document that foreign affiliates engaging in intra‐firm trade are relatively few and that the majority of these also engage in trade at arm's length, which accounts for an important fraction of their total trade. The identified firm‐level determinants of intra‐firm trade are consistent with property rights and intangible asset theories of the multinational firm, with international production hierarchy theories, as well as with theories of complex FDI and of multinational activity under credit constraints.

Suggested Citation

  • Sotiris Blanas & Adnan Seric, 2018. "Determinants of intra‐firm trade: Evidence from foreign affiliates in Sub‐Saharan Africa," Review of International Economics, Wiley Blackwell, vol. 26(4), pages 917-956, September.
    • Handle: RePEc:bla:reviec:v:26:y:2018:i:4:p:917-956
    DOI: 10.1111/roie.12348
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    4. Toshiyuki Matsuura & Banri Ito & Eiichi Tomiura, 2023. "Intrafirm trade, input–output linkage, and contractual frictions: evidence from Japanese affiliate-level data," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 159(1), pages 133-152, February.
    5. Alviarez, Vanessa & Saad, Ayhab, 2022. "Multinational Production and Intra-firm Trade," IDB Publications (Working Papers) 12525, Inter-American Development Bank.
    6. Oluwapomile Joseph OBAMOYEGUN & Niyi Solomon AWOTOMILUSI (Ph.D) & Omobolanle Abike AJIBOLA, 2024. "Transfer Pricing and Organizational Performance of Multinational Corporations in Nigeria: A Mediating Effect of Audit Quality," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 8(4), pages 1345-1365, April.

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