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Offshoring, Foreign Direct Investment, and the Structure of U.S. Trade

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  • Stephen Ross Yeaple

Abstract

Theory suggests that multinational enterprises (MNEs) play the role of factor service intermediaries in international trade. This paper presents the results of an empirical analysis that exploits variation in the intrafirm trade by U.S. MNEs across countries and industries to assess this theory. The results provide support for recent models of multinational enterprise and suggest that the activities of U.S. MNEs alter the structure of international trade, particularly among middle-income countries. (JEL: D2, F1, F23, L2) (c) 2006 by the European Economic Association.

Suggested Citation

  • Stephen Ross Yeaple, 2006. "Offshoring, Foreign Direct Investment, and the Structure of U.S. Trade," Journal of the European Economic Association, MIT Press, vol. 4(2-3), pages 602-611, 04-05.
    • Handle: RePEc:tpr:jeurec:v:4:y:2006:i:2-3:p:602-611
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    More about this item

    JEL classification:

    • D2 - Microeconomics - - Production and Organizations
    • F1 - International Economics - - Trade
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • L2 - Industrial Organization - - Firm Objectives, Organization, and Behavior

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