The Search for Relevance and the Contents of the International Economics Course Professor Zoya Mladenova Varna University of Economics

Ruigrok, W., “Paradigm Crisis in International Trade Theory”, Journal of World Trade, vol. 25, N 1, 1991

Data about the U.S. In 1977, the first year for which information is available, the share of intra-firm trade in U.S. exports is 35 %, and in U.S. imports – 44 %. In 1994 the corresponding indicators are 36 % and 43 % respectively. According to another source, intra-firm export accounts for between % of total U.S. export in 1992 – 2004, and intra- firm import accounts for about 45 – 48 % of total U.S. imports.

Intra-firm trade can be very important in international trade with particular destinations. For example in 2012 international intra-firm trade comprises 50% of U.S. – EU trade. In the same year intra-firm export is equal to 32 % of the total export from the U.S. to EU, and intra-firm import is equal to 62 %. There are however big differences between different EU countries: intra-firm export from the U.S. to Ireland, for example, is equal to 90 % of the total U.S. export to Ireland; 81 % of the total U.S. export to Slovenia, but only 7 % of the U.S. export to Latvia. Lacatos, C. and T. Fukui, EU – US Economic Linkages: The Role of Multinationals and Intra-Firm Trade, EC, Trade: Chief Economist Note, Issue 2, 2013, p. 5.

Other countries: France (1999) – 41 % of the French export and 36 % of the French import is intra-firm. Japan (1993) – 25 % of total export and 14 % of total import is intra-firm trade. Sweden (1994) – 38 % of total export and 9 % of total import is intra-firm. Denmark (2001) – 15 % of total export and 16 % of total import is intra-firm.

The world economy UNCTAD, World Investment Report 2001 – 2/3 of international trade can be attributed to MNC, and half of this is intra-firm trade (p. 56). UNCTAD, World Investment Report 2013: “Although evidence on intra-firm trade is patchy, the general consensus is that intra- firm trade accounts on average for about 30% of a country’s exports.” (p. 136)

In the same source of information it is calculated, that in 2010, $6,3 trillion is intra-firm export, which comprises 33 % of world export during the same year (the world export in 2010 is $19 trillion.)

The Handbook of Globalization (2011): “Despite the common view, it is extraordinary difficult to find satisfactory estimates of the importance of this trade.” The author also point out, that about 1/3 of world trade is intra-firm, and for the USA the figures are pretty stable (p ).