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The Determinants of Intrafirm Trade: In Search for Export-Import Magnification Effects

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  • Peter Egger
  • 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.
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  • Peter Egger & Michael Pfaffermayr, 2005. "The Determinants of Intrafirm Trade: In Search for Export-Import Magnification Effects," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 141(4), pages 648-669, December.
    • Handle: RePEc:spr:weltar:v:141:y:2005:i:4:p:648-669
    DOI: 10.1007/s10290-005-0050-8
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    5. Grossman, Gene M. & Helpman, Elhanan & Szeidl, Adam, 2006. "Optimal integration strategies for the multinational firm," Journal of International Economics, Elsevier, vol. 70(1), pages 216-238, September.
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    Cited by:

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    2. Holmes, Peter & Lopez-Gonzalez, Javier, 2011. "The Nature and Evolution of Vertical Specialisation: What is the Role of Preferential Trade Agreements?," Papers 222, World Trade Institute.
    3. Liu, Zhiyuan & Xu, Yue & Wang, Peijie & Akamavi, Raphaël, 2016. "A pendulum gravity model of outward FDI and export," International Business Review, Elsevier, vol. 25(6), pages 1356-1371.
    4. CHEVASSUS-LOZZA Emmanuelle & GALLIANO Danielle, 2006. "Intra-firm trade and European integration: Evidences from the French multinational agribusiness," Cahiers du GRES (2002-2009) 2006-24, Groupement de Recherches Economiques et Sociales.
    5. Jagdambe, S., 2018. "Impact of AIFTA on Agriculture Trade Creation & Trade Diversion: Gravity Model Analysis," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 276046, International Association of Agricultural Economists.
    6. Patricia Walter & Rene Dell`mour, 2010. "Firm level analysis of international trade in services," IFC Working Papers 4, Bank for International Settlements.

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