The multinational firm

Research output: Contribution to journalReview article

19 Scopus citations

Abstract

This article documents the recent advances in the international trade literature toward understanding the role of multinational firms in the conduct of international commerce. Over the past 10 years, we have developed a better understanding of the incentives firms face in their choice of production location, and we know more about the incentives that induce firms to vertically integrate. Furthermore, the theory literature has progressed from two-country models that cannot capture the richness of multinational firms' activities to multicountry models that do. The empirics have advanced as well but at a slower pace. Progress has been slowed by the lack of comprehensive data and the difficulties of distinguishing between the various mechanisms proposed by theory.

Original languageEnglish (US)
Pages (from-to)193-217
Number of pages25
JournalAnnual Review of Economics
Volume5
DOIs
StatePublished - Jan 1 2013

All Science Journal Classification (ASJC) codes

  • Economics and Econometrics

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