American Economic Review Vol. 109 No. 9 2019

Brands in Motion: How Frictions Shape Multinational Production

Keith Head¹; Thierry Mayer²

¹ Sauder School of Business, University of British Columbia, 2053 Main Hall, Vancouver, BC V6T 1Z2, CEPR, and CEP (email: ) · ² Sciences Po, Département d'économie, 28 Rue des Saints-Pères, 75007 Paris, France, Banque de France, CEPII, and CEPR (email: )

Abstract

Following the 2016 Leave vote in the referendum on UK membership in the EU and the election of Donald Trump, trade agreements have entered a period of great instability. To predict the impact of possible disruptions to existing arrangements requires counterfactual analysis that takes into account the complex set of factors influencing the production and marketing strategies of multinational corporations. We estimate a model of multinational decision-making in the car industry. This model predicts the production reallocation and consumer surplus consequences of changes in tariffs and non-tariff barriers induced by US-led protectionism, Brexit, transpacific, and transatlantic integration agreements.

DOI

10.1257/aer.20161345

Volume

109

Issue

9

Pages

3073-3124

Language

en

Sources

bibtex:phds-export.bib openalex openalex crossref

Cite

APA 7 MLA 9 Chicago (author–date) Harvard Elsevier Harvard (JFE, JBF…) The Accounting Review Academy of Management American Marketing Association INFORMS (Management Science) Copy citation Copied ✓