TY  - JOUR
AU  - Ramondo,Natalia
AU  - Rodríguez-Clare,Andrés
TI  - Trade, Multinational Production, and the Gains from Openness
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 15604
PY  - 2009
Y2  - December 2009
UR  - http://www.nber.org/papers/w15604
L1  - http://www.nber.org/papers/w15604.pdf
N1  - Author contact info:
Natalia Ramondo
Arizona State University
Department of Economics
POB 879801
Tempe, AZ  85287-9801
Tel: 480-965-0215
E-Mail: Natalia.Ramondo@asu.edu

Andres Rodriguez-Clare
University of California at Berkeley
Department of Economics
Berkeley, CA 94720-3880
E-Mail: andres1000@gmail.com
AB  - This paper quantifies the gains from openness arising from trade and multinational production (MP). We present a model that captures key dimensions of the interaction between these two flows: Trade and MP are competing ways to serve a foreign market; MP relies on imports of intermediate goods from the home country; and foreign affiliates of multinationals can export part of their output. The calibrated model implies that the gains from trade can be twice as high as the gains calculated in trade-only models, while the gains from MP are slightly lower than the gains computed in MP-only models.
ER  -