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dc.titleResearch Insights: How Does Intra-firm Trade Affect Multinational Production and the Transfer of Knowledge?
dc.contributor.authorAlviarez, Vanessa
dc.contributor.authorSaad, Ayhab
dc.contributor.orgunitDepartment of Research and Chief Economist
dc.coverageLatin America
dc.coverageThe Caribbean
dc.date.available2024-12-15T00:12:00
dc.date.issue2024-12-15T00:12:00
dc.description.abstractMultinational Corporations (MNCs) strategically position their production facilities near customers to counter the “trade gravity effect” where geographical distance reduces foreign sales through shipping costs and trade barriers. Despite this, the foreign sales of larger firms engaged in intra-firm trade remain influenced by the distance from headquarters. The transfer of intermediate inputs, technology, and processes from headquarters to affiliates is vital for enabling cross-border production and knowledge exchange. However, it reintroduces shipping costs, further diminishing affiliate sales. Reducing barriers to intra-firm trade can help enhance knowledge transfer across countries and narrow global productivity and income gaps.
dc.format.extent4
dc.identifier.doihttp://dx.doi.org/10.18235/0013370
dc.identifier.urlhttps://publications.iadb.org/publications/english/document/Research-Insights-How-Does-Intra-firm-Trade-Affect-Multinational-Production-and-the-Transfer-of-Knowledge.pdf
dc.identifier.urlhttps://publications.iadb.org/publications/spanish/document/Perspectivas-de-Investigacion-como-el-comercio-intraempresarial-afecta-a-la-produccion-multinacional-y-la-transferencia-de-conocimiento.pdf
dc.language.isoen
dc.publisherInter-American Development Bank
dc.subjectIntegration and Trade
dc.subjectKnowledge
dc.subjectTrade Impact
dc.subjectMode of Transport
dc.subjectSmall Business
dc.subjectProductivity
dc.subjectKnowledge Transfer
dc.subjectTrade Barrier
dc.subjectInvestment
dc.subjectLabor Force
dc.subjectFreight Logistic
dc.subjectScience and Technology
dc.subjectBusiness Productivity
dc.subject.jelcodeF12 - Models of Trade with Imperfect Competition and Scale Economies • Fragmentation
dc.subject.jelcodeF23 - Multinational Firms • International Business
idb.identifier.pubnumberIDB-CB-01024
idb.operationRG-K1089
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