TY  - JOUR
AU  - Borga,Maria
AU  - Lipsey,Robert E.
TI  - Factor Prices and Factor Substitution in U.S. Firms' Manufacturing Affiliates Abroad
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 10442
PY  - 2004
Y2  - April 2004
UR  - http://www.nber.org/papers/w10442
L1  - http://www.nber.org/papers/w10442.pdf
N1  - Author contact info:
Maria Borga
U.S. Bureau of Economic Analysis
International Investment Division (BE-50)
Washington, DC  20230
E-Mail: Maria.Borga@bea.gov

Robert E. Lipsey
NBER
365 Fifth Avenue, Suite 5318
New York, NY 10016-4309
Tel: 212/817-7961
Fax: 212/817-1597
E-Mail: N/A user is deceased
AB  - Using confidential individual firm data from the Bureau of Economic Analysis survey of U.S. firms' manufacturing operations abroad, we investigate the determinants of capital intensity in affiliate operations. Host country labor cost, the scale of host country production, and the capital intensity of the parent firm's production in the United States, are all significant influences. The parent's capital intensity is the strongest and most consistent determinant of affiliate capital intensity. Affiliates that export are more sensitive to these factors in their choice of factor proportions than affiliates that sell only in their host countries.
ER  -