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Journal articles

Brands in motion: How frictions shape multinational production

Abstract : 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.
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Submitted on : Thursday, October 21, 2021 - 5:46:19 PM
Last modification on : Monday, March 21, 2022 - 2:50:37 PM
Long-term archiving on: : Saturday, January 22, 2022 - 8:01:41 PM


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Keith Head, Thierry Mayer. Brands in motion: How frictions shape multinational production. American Economic Review, American Economic Association, 2019, 109 (9), pp.3073 - 3124. ⟨10.1257/aer.20161345⟩. ⟨hal-03391876⟩



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