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This Work has ben supported in part by a National Science Foundation Graduate Fellowship. I am Grateful to two referees, James Hines, Donald Davis, Richard Caves, and participants at Harvard University's international economics workshop and the Western Economic Association conference for helpful comments.
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Does multinational activity displace trade?
Article first published online: 26 MAR 2007
DOI: 10.1111/j.1465-7295.2000.tb00013.x
Additional Information
How to Cite
Clausing, K. (2000), Does multinational activity displace trade?. Economic Inquiry, 38: 190–205. doi: 10.1111/j.1465-7295.2000.tb00013.x
Publication History
- Issue published online: 26 MAR 2007
- Article first published online: 26 MAR 2007
- Abstract
- Article
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Using two-panel data sets on the operations of U.S. multinational firms abroad and the operations of foreign multinational firms in the United States, this article examines the empirical relationship between international trade and multinational activity. The evidence supports the conclusion that multinational activity and trade are complementary activities, particularly multinational activity and intrafirm trade. This empirical result is consistent with the theoretical reasons one might expect a complementary relationship between the two activities and is also robust to different approaches and specifications.