← Search

Adaptation and the Boundary of Multinational Firms

Arnaud Costinot1; Lindsay Oldenski2; James Rauch3

1 Moscow Institute of Thermal Technology · 2 Georgetown University · 3 Center for Economic and Policy Research

The Review of Economics and Statistics 2011 open access

This paper offers the first empirical analysis of the impact of adaptation on the boundary of multinational firms. To do so, we develop a ranking of sectors in terms of “routineness” by merging two sets of data: ratings of occupations by their intensities in solving problems from the U.S. Department of Labor's Occupational Information Network and U.S. employment shares of occupations by sectors from the Bureau of Labor Statistics Occupational Employment Statistics. Using U.S. Census trade data, we demonstrate that the share of intrafirm trade tends to be higher in less routine sectors.

DOI
10.1162/rest_a_00072
Volume
93 (1)
Pages
298-308
Language
en
Export
BibTeX
Sources
openalex crossref