THE INTERNATIONAL TRADE OF MULTINATIONAL FIRMS: THE EMPIRICAL BEHAVIOUR OF INTRAFIRM TRADE IN A GRAVITY EQUATION MODEL

Multinational firms are an increasingly important part of international economic integration. In recent years, foreign direct investment has been increasing at a rate that exceeds both the rate of growth of international trade and that of income. For many countries, the sales of affiliates of multinational firms have long dwarfed the value o