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Home Country Effects of Foreign Direct Investment: Evidence from Sweden

  • Blomström, Magnus


    (Dept. of Economics, Stockholm School of Economics)

  • Kokko, Ari


    (Dept. of Economics, Stockholm School of Economics)

This paper examines two broad issues related to foreign investment by Swedish multinationals: first the effects of outward foreign direct investment on domestic investment, exports, and employment, and second, the effects on the domestic economy from the increasing division of labor between the parents and foreign affiliates of Swedish MNCs. The paper summarizes and synthesizes the existing empirical evidence on these matters (much of which has hitherto only been available in Swedish) and discusses some possible long run effects that have not received much attention in the literature.

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Paper provided by Stockholm School of Economics in its series SSE/EFI Working Paper Series in Economics and Finance with number 3.

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Length: 30 pages
Date of creation: Jan 1994
Date of revision:
Publication status: Published in Canadian-Based Multinationals, Globerman, S. (eds.), University of Calgary Press.
Handle: RePEc:hhs:hastef:0003
Contact details of provider: Postal: The Economic Research Institute, Stockholm School of Economics, P.O. Box 6501, 113 83 Stockholm, Sweden
Phone: +46-(0)8-736 90 00
Fax: +46-(0)8-31 01 57
Web page:

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  1. Irving B. Kravis & Robert E. Lipsey, 1988. "The Effect of Multinational Firms' Operations on Their Domestic Employment," NBER Working Papers 2760, National Bureau of Economic Research, Inc.
  2. Dunne, Timothy & Roberts, Mark J & Samuelson, Larry, 1989. "The Growth and Failure of U.S. Manufacturing Plants," The Quarterly Journal of Economics, MIT Press, vol. 104(4), pages 671-98, November.
  3. Magnus Blomstrom & Robert E. Lipsey & Lennart Ohlsson, 1989. "What Do Rich Countries Trade with Each Other? R&D and the Composition of U.S. and Swedish Trade," NBER Working Papers 3140, National Bureau of Economic Research, Inc.
  4. Jordan GL & Valhne JE, 1981. "Domestic employment effects of direct investment abroad by two Swedish multinationals," ILO Working Papers 209169, International Labour Organization.
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