Measuring the Location of Production in a World of Intangible Productive Assets, FDI, and Intrafirm Trade
As production comes to depend more on intangible productive assets, the location of production by multinational firms becomes increasingly ambiguous. The reason is that, within the firm, these assets have no clear geographical location, but only a nominal location determined by the firm's tax or legal strategies.
Some possibilities for estimating the location of production that could supersede the present dependence on accounting measures distorted by tax-saving policies are described.
Published: Robert E. Lipsey, 2010. "Measuring The Location Of Production In A World Of Intangible Productive Assets, Fdi, And Intrafirm Trade," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 56(s1), pages S99-S110, 06.