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European Integration and Geographical Concentration of Swedish Multinationals

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  • Mathä, Thomas

    (The European Institute of Japanese Studies)

Abstract

This paper investigates whether European integration has an effect on the geographical concentration of Swedish multinationals' production inside the European Union. The results indicate that agglomeration and dispersion forces are present, and that the relative strength of these forces has been affected by the EU integration process. In particular, the European integration process has reduced intra-EU transaction costs, and thus the need of R&D intensive multinationals to engage in local production to fully appropriate the return of their assets. The results further suggest that EU integration has led Swedish MNEs to increase dispersion of production inside the European Union.

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Bibliographic Info

Paper provided by Stockholm School of Economics in its series Working Paper Series in Economics and Finance with number 305.

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Length: 29 pages
Date of creation: 12 Feb 1999
Date of revision:
Handle: RePEc:hhs:hastef:0305

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Keywords: Economic integration; multinational enterprises; geographical concentration and dispersion.;

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