Trade and Production Networks of U.S. Mncs and Exports by Their Asian Affiliates

Abstract

Network connections within MNCs seem to improve export market shares for Asian affiliates of those MNCs. In particular, Asian affiliates of U.S. MNCs export more to markets where their parent firms' exports to affiliates are larger, and less to markets where their parent firms export more to non-affiliates. However, the latter effect is much smaller per dollar of parent exports. These relationships are fairly consistent across industries and markets, across markets within two industries, across industries for two affiliate home countries, and across exporters and industries for individual markets.