Alviarez, Vanessa; Saad, Ayhab - 2022
Intra-firm trade, from parents to affiliates, has been combined with standard models of multinational production (MP …) to deliver gravity-style predictions for foreign affiliates' sales. Nonetheless, the evidence shows that intra-firm trade … significantly affected by the distance to their parents. We present a simple framework featuring MNCs' selection into intra-firm …