IDEAS home Printed from https://ideas.repec.org/a/bla/worlde/v43y2020i2p388-411.html
   My bibliography  Save this article

Welfare and trade elasticity with multinational production

Author

Listed:
  • Pamela Bombarda
  • Stefania Marcassa

Abstract

We explore welfare properties in a firm heterogeneity model with multinational production and export. The presence of multinational production plays a crucial role in delivering a partial trade elasticity of total sales by exporters and affiliates that is no longer constant, and depends on both supply and demand parameters. We then analyse counterfactual scenarios. Multinational production with intra‐firm trade increases welfare gains by up to 4% with respect to a model with only export and no truncation. Multinational production à la Helpman et al. (American Economic Review, 2004, 94, 300) generates the largest welfare gains from liberalisation.

Suggested Citation

  • Pamela Bombarda & Stefania Marcassa, 2020. "Welfare and trade elasticity with multinational production," The World Economy, Wiley Blackwell, vol. 43(2), pages 388-411, February.
    • Handle: RePEc:bla:worlde:v:43:y:2020:i:2:p:388-411
    DOI: 10.1111/twec.12850
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/twec.12850
    Download Restriction: no
    File URL: https://libkey.io/10.1111/twec.12850?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Other versions of this item:

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:worlde:v:43:y:2020:i:2:p:388-411. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://www.blackwellpublishing.com/journal.asp?ref=0378-5920 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.