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NBER Working Papers and Publications
|October 2017||The Labor Market Effects of Offshoring by U.S. Multinational Firms|
with Brian K. Kovak, Nicholas Sly: w23947
Previous papers on the labor market effects of offshoring have found very different results in terms of both the sign and magnitude of the relationship. This is in large part because offshoring encompasses many different activities and likely affects different types of firms in different ways. We first present a model of global sourcing to show how the relationship between offshoring and domestic employment can be expected to vary within and across different types of firms. We then use firm-level data on offshoring by U.S. MNEs from the Bureau of Economic Analysis (BEA) to test the model’s predictions at the firm, industry, and regional levels. Because the inherent simultaneity of multinational firms’ domestic and foreign affiliate employment decisions complicates causal identification, we...
|June 2012||The Differential Effects of Bilateral Tax Treaties|
with Bruce A. Blonigen, Nicholas Sly
in Business Taxation (Trans-Atlantic Public Economics Seminar), Michael Devereux and Roger Gordon, organizers
|October 2011||Separating the Opposing Effects of Bilateral Tax Treaties|
with Bruce A. Blonigen, Nicholas Sly: w17480
Bilateral tax treaties (BTT) are intended to promote foreign direct investment and foreign affiliate activity through double taxation relief. However, BTTs also typically contain provisions that facilitate sharing of tax information between countries intended to curtail tax avoidance by multinational firms. These provisions should disproportionately affect firms that intensively use inputs for which an arms-length price is easily observed, since strategic transfer practices that manipulate tax liabilities are no longer effective with information sharing between countries. Using BEA firm-level data we are able to separately estimate the impacts of double-taxation relief and sharing of tax information on investment behavior of US multinational firms. We find a significant positive effect of...
|January 2009||Adaptation and the Boundary of Multinational Firms|
with Arnaud Costinot, James E. Rauch: w14668
What determines the boundary of multinational firms? According to Williamson (1975), a potential rationale for vertical integration is to facilitate adaptation in a world where uncertainty is resolved over time. This paper offers the first empirical analysis of the impact of adaptation on the boundary of multinational firms. To do so, we first develop a ranking of sectors in terms of their "routineness" by merging two sets of data: (i) ratings of occupations by their intensities in "problem solving" from the U.S. Department of Labor's Occupational Information Network; and (ii) U.S. employment shares of occupations by sectors from the Bureau of Labor Statistics Occupational Employment Statistics. Using U.S. Census trade data, we then demonstrate that, in line with adaptation theories of the...
Published: Arnaud Costinot & Lindsay Oldenski & James Rauch, 2011. "Adaptation and the Boundary of Multinational Firms," The Review of Economics and Statistics, MIT Press, vol. 93(1), pages 298-308, October. citation courtesy of