Scarcity, Size and Productivity Advantage of Foreign Affiliates with Intra-Firm Trade
67 Pages Posted: 3 Jul 2015
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: Suggested Citation