OECD Trade Policy Papers

ISSN :
1816-6873 (en ligne)
DOI :
10.1787/18166873
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This series is designed to make available to a wider readership selected trade policy studies prepared for use within the OECD.

NB. No. 1 to No. 139 were released under the previous series title OECD Trade Policy Working Papers.

 

Intra-Firm Trade

Patterns, Determinants and Policy Implications You or your institution have access to this content

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Auteur(s):
Rainer Lanz1, S├ębastien Miroudot1
Author Affiliations
  • 1: OCDE, France

Date de publication
24 juin 2011
Bibliographic information
N°:
114
Pages
77
DOI
10.1787/5kg9p39lrwnn-en

Cacher / Voir l'abstract

The emergence of global value chains and the expansion of activities of multinational enterprises have increased the value of intra-firm trade flows. Despite growing attention from policymakers, few data are collected on trade transactions between related parties. Available evidence suggests that intra-firm trade represents a significant share of world trade but differs widely across countries and industries. Trade statistics and firm-level data point out that intra-firm trade and vertical integration occur predominantly among OECD countries and that firm behaviour and relationships between buyers and suppliers explain the patterns of intra-firm trade. The report analyses the implications of intra-firm trade for trade liberalisation, transfer pricing and the transmission of macroeconomic shocks. It finds that for trade policymakers, the rise of intra-firm trade underscores the benefits of trade liberalisation when domestic firms have affiliates abroad and foreign firms are established in the domestic economy. Trade policy should remain neutral with respect to firms. sourcing strategies but trade agreements should increasingly take into account vertical relationships between buyers and suppliers. Analysing the role of intra-firm trade during the 2008-09 trade collapse, the report furthermore highlights that while the role of global value chains was questioned in the transmission of the crisis, vertically integrated production networks can be more resilient in the context of an economic downturn.
Mots-clés:
vertical FDI, multinational enterprises, trade liberalisation, global value chains, related party trade, transfer-pricing, intra-firm trade, global production networks, sourcing strategies, foreign affiliates
Classification JEL:
  • F13: International Economics / Trade / Trade Policy; International Trade Organizations
  • F23: International Economics / International Factor Movements and International Business / Multinational Firms; International Business
  • L22: Industrial Organization / Firm Objectives, Organization, and Behavior / Firm Organization and Market Structure