A Simple Theory of International Trade with Multinational Corporations

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A Simple Theory of International Trade with Multinational Corporations

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Title: A Simple Theory of International Trade with Multinational Corporations
Author: Helpman, Elhanan
Citation: Helpman, Elhanan. 1984. A simple theory of international trade with multinational corporations. Journal of Political Economy 92(3): 451-471.
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Abstract: Using the idea that firm-specific assets associated with marketing, management, and product-specific R & D can be used to service production plants in countries other than the country in which these inputs are employed, I develop a simple general equilibrium model of international trade in which the location of plants in a differentiated product industry is a decision variable. The model is then used to derive predictions of trade patterns, volumes of trade, the share of intra-industry trade, and the share of intrafirm trade as functions of relative country size and differences in relative factor endowments.
Published Version: doi:10.1086/261236
Terms of Use: This article is made available under the terms and conditions applicable to Other Posted Material, as set forth at http://nrs.harvard.edu/urn-3:HUL.InstRepos:dash.current.terms-of-use#LAA
Citable link to this page: http://nrs.harvard.edu/urn-3:HUL.InstRepos:3445092
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