Travail de recherche/Working paper
| Résumé : | Traditional theories of firm boundaries predict trade between vertically related units of the same firm. Using novel data that combine a comprehensive map ping of U.S. multinationals’ production networks with their customs filings, we uncover a strong positive relationship between input-output linkages and trade between parents and their affiliates. We also find that intrafirm trade is prevalent, particularly between geographically proximate units: three-quarters of affiliates in North America trade with their U.S. parent. These results overturn prior find ings based on survey data on intrafirm trade. Administrative intrafirm records enable correcting measurement errors in survey data, reconciling traditional the ories with empirical evidence. |
