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European Integration and Geographical Concentration of Swedish Multinationals

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Author Info

  • Matha, T.

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 School of Economics, University of East Anglia, Norwich, UK. in its series University of East Anglia Discussion Papers in Economics with number 9902.

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Length: 29 pages
Date of creation: 1999
Date of revision:
Handle: RePEc:uea:papers:9902

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Postal: Helen Chapman, School of Economics, University of East Anglia, Norwich Research Park, Norwich, NR4 7TJ, UK
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Keywords: ECONOMIC INTEGRATION ; TRANSNATIONAL CORPORATIONS ; ECONOMIC CONCENTRATION;

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