Tariff Effects on MNC Decisions to Engage in Intra-Firm and Arms-Length Trade

Abstract

Using confidential firm level data from the Bureau of Economic Analysis (BEA) on activities of U.S. multinational corporations (MNCs) and their Canadian affiliates, we study the dramatic growth of intra-firm and arms-length U.S.-Canada trade over the 1984-1995 period. We find that the increase in trade occurred almost entirely on the intensive rather than… (More)

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