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European Integration and Geographical Concentration of Swedish Multinationals


  • Mathä, Thomas

    (The European Institute of Japanese Studies)


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.

Suggested Citation

  • Mathä, Thomas, 1999. "European Integration and Geographical Concentration of Swedish Multinationals," SSE/EFI Working Paper Series in Economics and Finance 305, Stockholm School of Economics.
  • Handle: RePEc:hhs:hastef:0305

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

    JEL classification:

    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
    • F15 - International Economics - - Trade - - - Economic Integration
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business

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