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dc.titleTrade Within Multinational Boundaries: Discussion Paper
dc.contributor.authorAlfaro, Laura
dc.contributor.authorConconi, Paola
dc.contributor.authorKamal, Fariha
dc.contributor.authorKroff, Zachary
dc.contributor.orgunitDepartment of Research and Chief Economist
dc.coverageUnited States
dc.date.available2025-07-16T00:07:00
dc.date.issue2025-07-16T00:07:00
dc.description.abstractWe leverage newly linked data from the U.S. Census Bureau and the U.S. Bureau of Economic Analysis to study transactions within U.S. multinational enterprises (MNEs). We show that using administrative data on intrafirm trade allows us to correct for measurement error in survey data and to identify the positive relationship between input-output (IO) linkages and the probability of trade between U.S. parents and their foreign affiliates. We also document the prevalence of intrafirm trade: more than half (three-quarters) of affiliates worldwide (in North America) export to or import from their U.S. parent. Our findings provide strong empirical support for traditional theories of firm boundaries that predict trade between vertically linked units of the same firm and underscore the importance of accounting for the trade frictions that shape MNEs' regional supply chains.
dc.format.extent12
dc.identifier.doihttp://dx.doi.org/10.18235/0013613
dc.identifier.urlhttps://publications.iadb.org/publications/english/document/Trade-Within-Multinational-Boundaries-Discussion-Paper.pdf
dc.language.isoen
dc.publisherInter-American Development Bank
dc.subjectIntegration and Trade
dc.subjectIntra-Regional Trade
dc.subjectSmall Business
dc.subjectTrade Facilitation
dc.subjectCensus
dc.subjectExport
dc.subjectCustoms Administration
dc.subjectIndustry
dc.subject.jelcodeD23 - Organizational Behavior • Transaction Costs • Property Rights
dc.subject.jelcodeF14 - Empirical Studies of Trade
dc.subject.jelcodeF23 - Multinational Firms • International Business
dc.subject.jelcodeL20 - Firm Objectives, Organization, and Behavior: General
dc.typeDiscussion Papers
idb.identifier.pubnumberIDB-DP-01095
idb.operationBK-C1102
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