TY - UNPB

T1 - Knowledge Transfer and Intra-Firm Trade

AU - Blanas, Sotiris

AU - Seric, Adnan

PY - 2017/6

Y1 - 2017/6

N2 - Using a unique sample of foreign affliates in Sub-Saharan Africa, we study the relationship of the extensive and intensive margins of their intra-firm trade with knowledge transfer to them from their parent companies. We find that the engagement of foreign affliates in intra-firm trade and their share of intra-firm trade are positively associated with the probability of these receiving crucial parental assistance in the use of patents, trademarks, and brand names, technology and know-how, access to foreign supplier network, and access to global markets. Foreign afiliates which engage in intra-firm trade and those with a higher share of this type of trade also receive more important overallparental assistance. The positive associations between intra-firm trade and knowledge transfer in the form of patents, trademarks and brand names are weaker in countries with relatively strong legal rights than in countries with relatively weak legal rights. Our findings point to the interplay between property rights and intangible assets theories of the multinational firm by suggesting that the joint role of knowledge ows in production and of multinational firm boundaries as facilitators of transfers of tangibles and intangibles is crucial.

AB - Using a unique sample of foreign affliates in Sub-Saharan Africa, we study the relationship of the extensive and intensive margins of their intra-firm trade with knowledge transfer to them from their parent companies. We find that the engagement of foreign affliates in intra-firm trade and their share of intra-firm trade are positively associated with the probability of these receiving crucial parental assistance in the use of patents, trademarks, and brand names, technology and know-how, access to foreign supplier network, and access to global markets. Foreign afiliates which engage in intra-firm trade and those with a higher share of this type of trade also receive more important overallparental assistance. The positive associations between intra-firm trade and knowledge transfer in the form of patents, trademarks and brand names are weaker in countries with relatively strong legal rights than in countries with relatively weak legal rights. Our findings point to the interplay between property rights and intangible assets theories of the multinational firm by suggesting that the joint role of knowledge ows in production and of multinational firm boundaries as facilitators of transfers of tangibles and intangibles is crucial.

KW - knowledge transfer

KW - intra-firm trade

KW - foreign affliates

KW - Sub-Saharan Africa

M3 - Working paper

T3 - Economics Working papers series

BT - Knowledge Transfer and Intra-Firm Trade

PB - Lancaster University, Department of Economics

CY - Lancaster

ER -