Skip to main content

The Bias of Intrafirm Trade in the Linder Trade Model

Buy Article:

$51.00 plus tax (Refund Policy)

Abstract:

Linder's thesis (1961) explaining trade among industrialized partners does not account for trade within the multinational firm. By law, intrafirm trade is counted in aggregate trade statistics used to test Linder's thesis. The volume and geography of that trade introduce a bias into those tests. This article reviews Linder in terms of intrafirm trade, briefly documenting the influence and geography of intrafirm trade. It goes on to demonstrate that intrafirm trade should be treated as an endogenous variable, and tests an amended Linder model of trade. Results from estimations of bilateral flows in four manufacturing sectors strongly support Linder's thesis.

Keywords: Linder Hypothesis; intrafirm trade

Document Type: Research Article

DOI: https://doi.org/10.1111/0033-0124.00300

Affiliations: West Chester University

Publication date: 2001-11-01

  • Access Key
  • Free content
  • Partial Free content
  • New content
  • Open access content
  • Partial Open access content
  • Subscribed content
  • Partial Subscribed content
  • Free trial content
Cookie Policy
X
Cookie Policy
Ingenta Connect website makes use of cookies so as to keep track of data that you have filled in. I am Happy with this Find out more