Type
Article
Title
Brands in motion: How frictions shape multinational production
In
American Economic Review
Author(s)
MAYER Thierry - Département d'économie (Author)
HEAD Keith - Sauder School of Business (Columbia University) (Author)
Editor
US : American Economic Association
Volume
109
Number
9
Pages
3073 - 3124 p.
ISSN
00028282
Abstract
EN
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.

BIBLIOGRAPHIC QUOTE
EXPORT