Université de Paris I, Panthéon Sorbonne,

Master 2, ETE, EIDT

Multinational Firms: Theory and Evidence
 Farid Toubal


 

This lecture covers advanced topics in international economics with a special emphasis on the activity of multinational firms. Topics include the role of multinational firms in the global economy, in particular the determinants and effects of multinational foreign activities, and the effect of international outsourcing on industrial development.

Download Area: Please click the Green Area to download materials. Due to time constraint Section III will only be discussed.

I. Stylized Facts  (Print)

BNV, chapter 1

II. The Proximity-Concentration Trade-off: Theory of Horizontal FDI (Print)

Brainard, S. Lael (1997),"An Empirical Assessment of the Proximity-Concentration Tradeoff Between Multinational Sales and Trade". American Economic Review, 87:4, pp.520-544.

Helpman, Elhanan, Marc J. Melitz, and Stephen R.Yeaple (2004),"Exports versus FDI with Heterogeneous Firms". American Economic Review, 94:1, pp. 300-316.

Markusen, James R. (1984),"Multinationals, Multi-Plant Economies, and the Gains from Trade". Journal of International Economics, 16, pp. 205-226.

Markusen J. and A. Venables (1998),"Multinational Firms and the New Trade Theory". Journal of International Economics, 46(2), 183-203.

Markusen, James R. and Anthony J. Venables (2000),"The Theory of Endowment, Intraindustry and Multi-national Trade". Journal of International Economics, 52, pp. 209-234.

**III. Vertical FDI: Theory and Evidence (Print)

Helpman, Elhanan (1984), "A Simple Theory of International Trade with Multinational Corporations", Journal of Political Economy, 92:3, pp. 451-471.

Helpman, Elhanan and Paul R. Krugman (1985), Market Structure and Foreign Trade, Cambridge, MA: MIT Press. Chapter 12.

Yeaple, Stephen (2003), "The Role of Skill Endowments in the Structure of U.S.Outward FDI," Review of Economics and Statistics, August, 85(3), pp. 726-734.

IV. The Boundary of Multinational Firms: In-House versus Outsourcing (Print)

Antrās, Pol (2003). "Firms, Contracts, and Trade Structure". Quarterly Journal of Economics, 118 (4): 1375-1418.

Antrās, Pol (2005a). "Property-Rights and the International Organization of Production," American Economic Review Papers and Proceedings, May 2005,  25-32.

Antrās, Pol (2005b). "Incomplete Contracts and the Product Cycle". American Economic Review, 95 (4): 1054-1073.

Antrās, Pol and Elhanan Helpman (2004). "Global Sourcing". Journal of Political Economy, 112 (3): 552-580.

Defever, Fabrice and Farid Toubal (2008). Productivity and the Sourcing Modes of Multinational Firms: Evidence from French Firm-Level Data, CEP DP0842, 2007. (With Fabrice Defever). See Columns in VOX.

Grossman, G.M. and Helpman, E. (2002). "Integration vs. Outsourcing in Industry Equilibrium". Quarterly Journal of Economics 117 (1): 85-120.

Grossman, G.M. and Helpman, E. (2005). "Outsourcing in a Global Economy". Review of Economic Studies 72: 135–159.

Liza Jabbour (2005). “The Choice of Modes of Vertical Specialization by French Manufacturing Firms”. Miméo Paris

Trefler, Daniel (2005). Service Offshoring: Threats and Opportunities. Brookings Trade Forum, 35-60

Textbooks

[BNV] Navaretti G-B. and A. J. Venables (2004) Multinational Firms in the World Economy. Princeton University Press.

[M] Markusen J.E (2002). Multinational Firms and the Theory of International Trade. MIT Press.

 

Additional Ressources

[A1] Antras P. (2005). Topics in International Trade

[A2] Antras P. (2005); Advanced Topics in International Trade

 

Other textbooks

Muchielli J.L. and T. Mayer (2004). Multinational Firms' Location and the New Economic Geography. New horizons in ionternational business, Edward Elgar

 

Text List