Subsidizing Away Exports? A Note on R&D-policy Towards Multinational Firms
AbstractIn this paper, I investigate whether instead of strengthening home-based production, government R&D-subsidies can induce R&D-intensive firms to locate production abroad. Investigating firm-level data on Swedish MNEs, however, I find no evidence of such relocation. R&D subsidies rather tend to en courage export production at the expense of foreign production. The theory presented suggests that this is consistent with technology transfer costs, which outweigh trade costs for physical goods.
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Bibliographic InfoArticle provided by Springer in its journal Journal of Industry, Competition and Trade.
Volume (Year): 11 (2011)
Issue (Month): 1 (March)
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Web page: http://springerlink.metapress.com/link.asp?id=105724
multinational firms; R&D; subsidies; location; empirical analyses; L13; F23; O33;
Other versions of this item:
- Norbäck, Pehr-Johan, 2010. "Subsidizing Away Exports? A Note on R&D-policy towards Multinational Firms," Working Paper Series 832, Research Institute of Industrial Economics.
- F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
- L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
- O33 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
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