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Author:Andersson, T.
Fredriksson, T.
Title:Distinction between intermediate and finished products in intra-firm trade
Journal:International Journal of Industrial Organization
2000 : JUL, VOL. 18:5, p. 773-792
Index terms:Multinational companies
Vertical integration
Organizational structure
Scandinavia
Sweden
Europe
Freeterms:Nordic countries
Language:eng
Abstract:Although intra-firm trade has been viewed as associated with vertical integration, which exploits opportunities for exchange btw. inherently dissimilar economies, it is more common between developed countries where horizontal integration is expected to dominate. Using unique data from 1974 to 1990 on Swedish firms, application of a Tobit model explains variations in majority-owned manufacturing affiliates' internal imports of intermediate and finished goods on the basis of firms' international organization of production. Effects which are unobservable in aggregate figures show up only when finished and intermediate goods are separated.
SCIMA record nr: 210432
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