NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Multinational Firms and the Factor Intensity of Trade

Robert E. Lipsey, Merle Yahr Weiss

NBER Working Paper No. 8
Issued in September 1973

In studying the impact of direct investment on the amount, direction, and composition of international trade we have found that the multinational firm fits uncomfortably into the usual theory of trade and capital movements. We attempt here to introduce the fact of the existence of multinational firms into the explanation of trade flows and particularly into the long-running debate over the relations among factor abundance, factor prices and trade.

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Document Object Identifier (DOI): 10.3386/w0008

 
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