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. ? 2015 Elsevier B.V.

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1 January 2016

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Journal of International Economics 98, pp.51-59, 2016

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DOI: 10.1016/j.jinteco.2015.08.002

https://www.sciencedirect.com/science/article/abs/pii/S0022199615001257?via%3Dihub

This Journal article is published under the centre's Trade programme.