Estimating UK intra-firm trade
This report develops experimental estimates of UK intra-firm trade and proposes data improvements.
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This paper examines the scale and characteristics of UK intra‑firm trade amid growing global production fragmentation.
The report develops experimental estimates of UK intra‑firm trade in goods. The methodology relies on limited official public data and a novel approach that combines large language models (LLMs) and firm‑level microdata.
Results show that intra‑firm trade:
- constitutes a substantial share of UK trade
- is dominated by a small number of large multinational enterprises
- varies significantly by industry, transport mode and partner country
The paper highlights major data gaps in the UK and recommends enhancing customs, survey and administrative data to produce robust intra‑firm trade statistics.