Kiel Working Papers, Kiel Institute for World Economics
No 1247:
The Determinants of Intra-Firm Trade: In Search form Export-Import Magnification Effects
Peter Egger and Michael Pfaffermayr
Abstract: This paper studies the determinants of Austrian bilateral
intra-firm trade in a panel of industry-level intra-firm goods trade flows.
Economic size, unit labor costs and the magnification effects originating
from multiple border crossing of sequentially finished products are found
to be the most important determinants of trade within multinational firms.
Especially, our evidence lends support to multiple border crossing of
sequentially finished products, an argument that recently has been put
forward in the outsourcing literature.
31 pages, May 2005
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