TY  - JOUR
AU  - Clausing, Kimberly A
TI  - The Impact of Transfer Pricing on Intrafirm Trade
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 6688
PY  - 1998
Y2  - August 1998
DO  - 10.3386/w6688
UR  - http://www.nber.org/papers/w6688
L1  - http://www.nber.org/papers/w6688.pdf
M1  - published as Kimberly A. Clausing. "The Impact of Transfer Pricing on Intrafirm Trade," in James R. Hines, Jr., "International Taxation and Multinational Activity" University of Chicago Press (2000)

AB  - Using data on the operations of U.S. parent firms and their foreign affiliates between 1982 and 1994, this paper examines the extent to which tax minimizing behavior influences intrafirm trade.  The results indicate that taxes have a substantial influence on intrafirm trade flows between U.S. parent firms and their affiliates abroad; the United States has less favorable intrafirm trade balances with low tax countries.  This result is anticipated if U.S. sales to affiliates in low tax countries are underpriced and U.S. purchases from affiliates in high tax countries are overpriced.  Taxes are also shown to have an influence on intrafirm trade flows between different foreign affiliates of U.S. firms.
ER  -