Search Results
Showing results 1 to 1 of approximately 1.
(refine search)
Report
Arm's-length transactions as a source of incomplete cross-border transmission: the case of autos
A growing share of international trade occurs through intra-firm transactions-those between domestic and foreign subsidiaries of a multinational firm. The difficulties associated with writing and enforcing a vertical contract compound when a product must cross a national border, and may explain the high rate of multinational trade across such borders. We show that this common cross-border organization of the firm may have implications for the well-documented incomplete transmission of shocks across borders. We present new evidence of a positive relationship between an industry's share of ...