The EC and the Locational Choice of Swedish Multinational Companies
In a world with multinational companies (MNC's) changes such as those implied by the realization of EC's internal market will affect the locational choice made by geographically mobile MNC's outside the EC. The reason is that any change which affects the competitive advantage of EC producers relative to non-EC producers will alter the choice between MNC exports to and local production in the EC. This paper presents an empirical analysis of this issue. It uses comprehensive micro data on Swedish MNC production and trade for the period 1965-86 to test hypotheses regarding the effects of European trade policy on the locational choice of Swedish MNC's in that period. The results show that being part of a trade liberalization area strongly stimulates exporting relative to producing abroad by MNC's. It is suggested that this should be relevant to an evaluation of the effects of the EC internal market on non-EC members like Sweden.
|Date of creation:||Nov 1990|
|Contact details of provider:|| Postal: Research Institute of Industrial Economics, Box 55665, SE-102 15 Stockholm, Sweden|
Phone: +46 8 665 4500
Fax: +46 8 665 4599
Web page: http://www.ifn.se/
More information through EDIRC
When requesting a correction, please mention this item's handle: RePEc:hhs:iuiwop:0284. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Elisabeth Gustafsson)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.