Intrafirm trade and vertical fragmentation in U.S. multinational corporations

Natalia Ramondo, Veronica Rappoport, Kim J. Ruhl

Research output: Contribution to journalArticle

42 Scopus citations

Abstract

Using firm-level data, we document two new facts regarding intrafirm trade and the activities of the foreign affiliates of U.S. multinational corporations. First, intrafirm trade is concentrated among a small number of large affiliates within large multinational corporations; the median affiliate ships nothing to the rest of the corporation. Second, we find that the input-output coefficient linking the parent's and affiliate's industries of operation - a characteristic commonly associated with production fragmentation - is not related to a corresponding intrafirm flow of goods.

Original languageEnglish (US)
Pages (from-to)51-59
Number of pages9
JournalJournal of International Economics
Volume98
DOIs
StatePublished - Jan 1 2016

All Science Journal Classification (ASJC) codes

  • Finance
  • Economics and Econometrics

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