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Determinants of Intra-Firm Trade

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  • Sotiris Blanas
  • Adnan Seric

Abstract

By exploiting a unique sample of foreign affliates in Sub-Saharan Africa, we study previously examined and unexamined firm-level determinants of intra-firm trade. We document that foreign affliates 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 assets theories of the multinational firm, with international production hierarchies theories, as well as with theories of different FDI types and of multinational activity under credit constraints.

Suggested Citation

  • Sotiris Blanas & Adnan Seric, 2017. "Determinants of Intra-Firm Trade," Working Papers 178118175, Lancaster University Management School, Economics Department.
  • Handle: RePEc:lan:wpaper:178118175
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    More about this item

    Keywords

    intra-firm trade determinants; foreign affliates; Sub-Saharan Africa;
    All these keywords.

    JEL classification:

    • F19 - International Economics - - Trade - - - Other
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • L21 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Business Objectives of the Firm
    • L23 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Organization of Production
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance

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