We study the effects of policy reforms in the South on the decisions of intrafirm and arm’slength production transfers by Northern firms. We show theoretically that relaxing ownershipcontrols and improving contract enforcement can induce multinational companies to expandproduct varieties to...

Within a structural model we explicitly allow for the trade orientation of companies to estimateproductivity dynamics within 4-digit UK manufacturing industries. We use the FAME data onUK companies over the period 1994-2003. Following Ackerberg et al. (2005) we adjust thealgorithm in Olley and...