The asymmetric effects of tariffs on intra-firm trade and offshoring decisions

Arbeitspapier

This paper studies the effects of tariffs on intra-firm trade. Building on the Antràs and Helpman (2004) North-South theoretical framework, I show that higher Northern tariffs reduce the incentives for outsourcing and offshoring, while higher Southern tariffs have the opposite effects. I also show that increased offshoring and outsourcing imply an increase in the ratio of Northern intra-firm imports to total imports, which is an empirically testable prediction. Using a highly disaggregated dataset of U.S. (the North) imports and relevant tariffs, I find robust evidence to support the model´s predictions.

Show object

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Working Papers ; No. 10-4

Classification and Topics

• Classification: Wirtschaft ; Trade: General ; Multinational Firms; International Business ; Firm Organization and Market Structure ; Organization of Production
• Subject: Intra-firm trade ; offshoring ; outsourcing tariffs ; Zoll ; Außenhandelsbeschränkung ; Intraindustrieller Handel ; Offshoring ; Outsourcing ; Nord-Süd-Beziehungen ; Theorie ; USA ; Welt

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Díez, Federico J.
• Event: Veröffentlichung
• (who): Federal Reserve Bank of Boston
• (where): Boston, MA
• (when): 2010

Further information

• Handle: http://hdl.handle.net/10419/55652