Working Paper: CEPR ID: DP8598
Authors: Pol Antràs
Abstract: I survey the influence of Grossman and Hart's (1986) seminal paper in the field of International Trade. I discuss the implementation of the theory in open-economy environments and its implications for the international organization of production and the structure of international trade flows. I also review empirical work suggestive of the empirical relevance of the property-rights theory. Along the way, I develop novel theoretical results and also outline some of the key limitations of existing contributions.
Keywords: intrafirm trade; multinational firms; outsourcing; property rights
JEL Codes: D23; F10; F12; F14; F21; F23; L22; L23
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| headquarter intensity (R38) | integration decision (F15) |
| integration decision (F15) | distribution of surplus (D39) |
| elasticity of revenue concerning investments (G31) | ownership rights allocation (P14) |
| headquarter intensity (R38) | outsourcing decision (L24) |