The Single European Market, Swedish Investment Liberalisation, and Horizontal and Vertical Multinationals
AbstractThis paper analyses the effects of the Single European Market and Swedish Investment liberalisation on the structure of Swedish multinationals with their EU affiliates. The empirical results suggest that the determinants associated with horizontal and vertical multinationals have become increasingly relevant between 1974 and 1994. Horizontal multinationals are increasingly deterred by large plant-level economies of scale, increasingly associated with large trade costs and relative factor endowment similarities, while vertical multinationals are increasingly associated with relative factor endowment differences. This suggests that European integration has increased competitive pressures to enhance efficiency in exploiting economies of scale, and specialisation according to comparative advantages.
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Bibliographic InfoPaper provided by Stockholm School of Economics in its series Working Paper Series in Economics and Finance with number 483.
Length: 32 pages
Date of creation: 27 Dec 2001
Date of revision:
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Postal: The Economic Research Institute, Stockholm School of Economics, P.O. Box 6501, 113 83 Stockholm, Sweden
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More information through EDIRC
Single European Market; Swedish Investment Liberalisation; Country Size; Factor Endowments; Horizontal & Vertical Multinationals;
Other versions of this item:
- Mathä, Thomas, 2002. "The Single European Market, Swedish Investment Liberalisation, and Horizontal and Vertical Multinationals," EIJS Working Paper Series, The European Institute of Japanese Studies 147, The European Institute of Japanese Studies.
- F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
- F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
- F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
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