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Intra-Industry Affiliate Trade of Foreign-Owned Companies in Transition Economies: The Importance of Organization of Production

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  • Jørgen Ulff-Møller Nielsen, Denmark
  • Konrad Pawlik, Jagiellonian Institute, Warsaw, Poland
Using a database containing trade and industry variables of foreign-owned companies in the Polish manufacturing industry for the years 1993-2002, we investigate the relationship between the organizational structure of multinational enterprises (MNE) in Poland and the intra-industry trade of their affiliates (IIAT). We find labour intensity; scale economies and absorptive capacity of affiliates are the main explanatory variables for IIAT. Given the overall rise in export and import intensities of foreign affiliates over the period of investigation, our findings suggest that export-platform FDI has become a more important mode of organization for multinational enterprises as Poland has evolved into a relatively stable economic environment where MNEs feel comfortable basing their regional operations.
Original languageEnglish
JournalInternational Trade Journal
Pages (from-to)341-371
Publication statusPublished - 2008

    Research areas

  • Intra-industry affiliate trade, transition economy, Poland, multinational enterprise

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