Trade economists have for long considered gravity models to estimate unexhausted potentials for bilateral trade. Similar to the discrepancy between "normal" and "actual" bilateral trade, one may ask the question about the difference between "normal" and actual bilateral multinational activity....

This paper studies the determinants of Austrian bilateral intrafirm trade in a panel of industry-level intrafirm goods trade flows. Economic size, unit labor costs and the magnification effects originating from multiple border crossing of sequentically finished products are found to be the most...