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U.S. Intra-Firm International Trade

Author

Listed:
  • Khan, Haider
  • Akram, Tanweer
  • Holladay, J. Scott

Abstract

Intra-firm trade is an important component of United States’ international trade with the rest of the world. The stylized facts about U.S. intra-firm trade reveal some interesting patterns. Intra-firm trade is increasing with newly developed countries particularly in Asia and Eastern Europe, there is an intra-firm trade deficit that adds to the overall trade deficit and intra-firm trade with China is a large and growing part of overall intra-firm trade. These facts are consistent with a horizontal multinational trade model. The high share of intra-firm transactions in international trade has implications for the trade deficit and tax policy

Suggested Citation

  • Khan, Haider & Akram, Tanweer & Holladay, J. Scott, 2008. "U.S. Intra-Firm International Trade," MPRA Paper 7612, University Library of Munich, Germany, revised 2008.
    • Handle: RePEc:pra:mprapa:7612
    as

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    File URL: https://mpra.ub.uni-muenchen.de/7612/1/MPRA_paper_7612.pdf
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    References listed on IDEAS

    as
    1. James R. Markusen, 2004. "Multinational Firms and the Theory of International Trade," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262633078, December.
    2. Dunning, John H & Rugman, Alan M, 1985. "The Influence of Hymer's Dissertation on the Theory of Foreign Direct Investment," American Economic Review, American Economic Association, vol. 75(2), pages 228-232, May.
    3. Ignatius J. Horstmann & James R. Markusen, 2021. "Endogenous market structures in international trade (natura facit saltum)," World Scientific Book Chapters, in: BROADENING TRADE THEORY Incorporating Market Realities into Traditional Models, chapter 2, pages 25-45, World Scientific Publishing Co. Pte. Ltd..
    4. David J. TEECE, 2008. "TRANSACTIONS COST ECONOMICS AND THE MULTINATIONAL ENTERPRISE: An Assessment," World Scientific Book Chapters, in: The Transfer And Licensing Of Know-How And Intellectual Property Understanding the Multinational Enterprise in the Modern World, chapter 20, pages 427-451, World Scientific Publishing Co. Pte. Ltd..
    5. Martin, Stephen, 1991. "Direct foreign investment in the United States," Journal of Economic Behavior & Organization, Elsevier, vol. 16(3), pages 283-293, December.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Intra-firm trade; related party trade; international trade; multinational corporations; transnational corporations; foreign direct investment;
    All these keywords.

    JEL classification:

    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade

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