Replication data for: Input Sourcing and Multinational Production

Principal Investigator(s):  View help for Principal Investigator(s) Stefania Garetto

Version:  View help for Version V1

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LICENSE.txt text/plain 14.6 KB 10/12/2019 05:41:PM

Project Citation: 

Garetto, Stefania. Replication data for: Input Sourcing and Multinational Production. Nashville, TN: American Economic Association [publisher], 2013. Ann Arbor, MI: Inter-university Consortium for Political and Social Research [distributor], 2019-10-12. https://doi.org/10.3886/E114266V1

Project Description

Summary:  View help for Summary I propose a general equilibrium framework where firms decide whether to outsource or integrate input manufacturing, domestically or abroad. By outsourcing, firms may benefit from suppliers' technologies, but pay mark-up prices. By sourcing intrafirm, they save on mark-ups and pay possibly lower foreign wages. Multinational corporations arise when firms integrate production abroad. The model predicts that intrafirm imports are positively correlated with the mean and variance of the firms' productivity distribution and with the degree of input differentiation. I use the model to quantify the US welfare gains from intrafirm trade, which amount to about 0.23 percent of consumption per-capita. (JEL D21, F12, F23, F41, L11, L24)

Scope of Project

JEL Classification:  View help for JEL Classification
      D21 Firm Behavior: Theory
      F12 Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
      F23 Multinational Firms; International Business
      F41 Open Economy Macroeconomics
      L11 Production, Pricing, and Market Structure; Size Distribution of Firms
      L24 Contracting Out; Joint Ventures; Technology Licensing
Geographic Coverage:  View help for Geographic Coverage aggregate of other country, US
Time Period(s):  View help for Time Period(s) 2004 – 2004
Data Type(s):  View help for Data Type(s) aggregate data
Collection Notes:  View help for Collection Notes All data used are publicly available for dowload

Methodology

Data Source:  View help for Data Source Bureau of Economic Analysis, World Development Indicators
Unit(s) of Observation:  View help for Unit(s) of Observation country,

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Published Versions

V1 [2019-10-12]

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