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European Integration and Geographical Concentration of Swedish Multinationals

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  • Thomas Mathae

    (School of Economic and Social Studies,)

Abstract

This paper investigates whether European integration has an effect on the geographical con-centration of Swedish multinationals' production inside the European Union. The results indi-cate 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 inte-gration 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

  • Thomas Mathae, "undated". "European Integration and Geographical Concentration of Swedish Multinationals," University of East Anglia Discussion Papers in Economics _003, School of Economics, University of East Anglia, Norwich, UK..
    • Handle: RePEc:uea:papers:_003
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    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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