NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Intra-firm Trade and Product Contractibility (Long Version)

Andrew B. Bernard, J. Bradford Jensen, Stephen J. Redding, Peter K. Schott

NBER Working Paper No. 15881
Issued in April 2010
NBER Program(s):   ITI

This paper examines the determinants of intra-firm trade in U.S. imports using detailed country-product data. We create a new measure of product contractibility based on the degree of intermediation in international trade for the product. We find important roles for the interaction of country and product characteristics in determining intra-firm trade shares. Intra-firm trade is high for products with low levels of contractability sourced from countries with weak governance, for skill-intensive products from skill-scarce countries, and for capital-intensive products from capital-abundant countries.

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Document Object Identifier (DOI): 10.3386/w15881

Published: "Intra-Firm Trade and Product Contractibility" American Economic Review Papers and Proceedings, Vol. 100, No. 2, May 2010 with J. Bradford Jensen, Stephen J. Redding and Peter K. Schott, (pp. 444-48)

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