Factor Prices and Factor Substitution in U.S. Firms' Manufacturing Affiliates Abroad / Maria Borga, Robert E. Lipsey.

Format:

Book

Author/Creator:

Borga, Maria.

Contributor:

National Bureau of Economic Research.

Lipsey, Robert E.

Series:

Working Paper Series (National Bureau of Economic Research) no. w10442.

NBER working paper series no. w10442

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 2004.

Summary:

Using confidential individual firm data from the Bureau of Economic Analysis survey of U.S. firms' manufacturing operations abroad, we investigate the determinants of capital intensity in affiliate operations. Host country labor cost, the scale of host country production, and the capital intensity of the parent firm's production in the United States, are all significant influences. The parent's capital intensity is the strongest and most consistent determinant of affiliate capital intensity. Affiliates that export are more sensitive to these factors in their choice of factor proportions than affiliates that sell only in their host countries.

Notes:

Print version record

April 2004.