Scarcity, Size and Productivity Advantage of Foreign Affiliates with Intra-Firm Trade

67 Pages Posted: 3 Jul 2015

See all articles by Sotiris Blanas

Sotiris Blanas

National Bank of Belgium

Adnan Seric

United Nations Industrial Development Organization (UNIDO)

Date Written: April 2015

Abstract

We juxtapose the main characteristics of 2403 foreign affiliates with and without intra-firm trade in 19 sub-Saharan-African countries in 2010. While intra-firm trade is scarce among foreign affiliates in the sample, arm’s length trade is a very popular activity, even among those with intra-firm trade. The main distinguishing features of the average foreign affiliate with intra-firm trade are its larger size and higher productivity level. Its size premia range between 31.5% and 56.3% and its productivity premia between 25.4% and 30.7%.

Keywords: foreign affiliates, intra-firm trade, complex FDI, sub-Saharan Africa, firm characteristics

JEL Classification: F14, F23, L21, L23, L24, L25

Suggested Citation

Blanas, Sotiris and Seric, Adnan, Scarcity, Size and Productivity Advantage of Foreign Affiliates with Intra-Firm Trade (April 2015). Robert Schuman Centre for Advanced Studies Research Paper No. RSCAS 2015/26, Available at SSRN: https://ssrn.com/abstract=2625646 or http://dx.doi.org/10.2139/ssrn.2625646

Sotiris Blanas (Contact Author)

National Bank of Belgium ( email )

Brussels, B-1000
Belgium

Adnan Seric

United Nations Industrial Development Organization (UNIDO) ( email )

Wagramer Strasse 5
P.O. Box 300
Vienna, A-1400
Austria

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