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Strategic Investments in the Pulp and Paper Industry: A Count Data Regression Analysis

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  • Bergman, Mats

    (Research Institute of Industrial Economics)

  • Johansson, Per

    (IFAU - Office of Labour Market Policy Evaluation)

Abstract

The effects of price and market size variables on the investment propensities in the pulp and paper industry are analyzed. A panel of 15 European countries for the time period 1984 - 1997 is used in the regression analysis. We find that the wages, the $US/ECU$ exchange rate, the price of paper and the installed production capacity are the main determinants of strategic investments in this industry. There are no - or only very small - effects from our measures of market size.

Suggested Citation

  • Bergman, Mats & Johansson, Per, 2000. "Strategic Investments in the Pulp and Paper Industry: A Count Data Regression Analysis," Umeå Economic Studies 536, Umeå University, Department of Economics.
    • Handle: RePEc:hhs:umnees:0536
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    More about this item

    Keywords

    Lumpy investments; Prices; Market size; Agglomeration; Distance;
    All these keywords.

    JEL classification:

    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • L16 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Industrial Organization and Macroeconomics; Macroeconomic Industrial Structure

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