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Global ProductionFirms, Contracts, and Trade Structure$
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Pol Antràs

Print publication date: 2015

Print ISBN-13: 9780691168272

Published to Princeton Scholarship Online: October 2017

DOI: 10.23943/princeton/9780691168272.001.0001

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Internalization: Empirical Evidence

Internalization: Empirical Evidence

(p.217) 8 Internalization: Empirical Evidence
Global Production

Pol Antràs

Princeton University Press

This chapter describes how the internalization theories discussed in the previous chapters can be taken to the data. The empirical literature on this topic is still budding and has yet to provide fully convincing empirical tests of these models. Several well-crafted papers have offered different pieces of evidence that are consistent with one or more of those models, but the power of such tests remains fairly low, as the chapter explains. The goal of this chapter is thus not only to overview and replicate past work, but to try to highlight some of its limitations and suggest avenues for future research in this area.

Keywords:   internalization, internalization theories, empirical literature, transaction-cost theory, property-rights theory, empirical tests

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