U.S. Bureau of Economic Analysis
International Investment Division (BE-50)
Washington, DC 20230
NBER Working Papers and Publications
|May 2009||Improved Measures of U.S. International Services: The Cases of Insurance, Wholesale and Retail Trade, and Financial Services|
in International Trade in Services and Intangibles in the Era of Globalization, Marshall Reinsdorf and Matthew J. Slaughter, editors
|April 2004||Factor Prices and Factor Substitution in U.S. Firms' Manufacturing Affiliates Abroad|
with Robert E. Lipsey: w10442
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.
Published: Maria Borga & Robert E. Lipsey, 2009. "Factor Prices, Factor Substitution and Exporting in US Manufacturing Affiliates Abroad," The World Economy, Blackwell Publishing, vol. 32(1), pages 30-48, 01.