type="main" xml:lang="en" <title type="main">Abstract</title> <p>This paper sheds light on interdependencies in multinational activity that are brought about by (horizontal) trade in final goods and (vertical) trade in intermediate goods (within and between host countries). We use a panel data set of US foreign affiliate...</p>

We use a panel approach, covering 10 EU Member States over the period 1981-99, for each of three major industry groups (manufacturing, construction and services) and 18 more detailed industries to test whether the EU's Single Market Programme has led to a reduction in firms' mark-ups over...