Irarrazabal, Alfonso; Moxnes, Andreas; Opromolla, Luca David - In: Journal of Political Economy 121 (2013) 1, pp. 74-74
Multinational production (MP) can lead to large gains through international technology sharing. However, empirical evidence suggests that geography matters for MP: Affiliate sales fall in distance from the headquarters. We introduce intrafirm trade into a standard model of exports and MP and...