Does Foreign Direct Investment Replace Home Country Investment? The effect of European Integration on the Location of Swedish Investment
(2000) In Journal of Common Market Studies 38(2). p.199-221- Abstract
- The purpose of this article is to examine the effects of European integration on the location of investments by Swedish multinational corporations (MNCs). Evidence is presented about the extent to which European integration has attracted investment by Swedish MNCs, and whether foreign direct investment (FDI) is being undertaken at the expense of home country investment. In the empirical analysis, involving both OLS and iterative SUR techniques, a significant difference across industries has been confirmed. A substitutionary relationship between foreign and home country investment is found for more R&D-intensive production, whereas the opposite pattern seems to prevail for production based on traditional comparative advantage. The... (More)
- The purpose of this article is to examine the effects of European integration on the location of investments by Swedish multinational corporations (MNCs). Evidence is presented about the extent to which European integration has attracted investment by Swedish MNCs, and whether foreign direct investment (FDI) is being undertaken at the expense of home country investment. In the empirical analysis, involving both OLS and iterative SUR techniques, a significant difference across industries has been confirmed. A substitutionary relationship between foreign and home country investment is found for more R&D-intensive production, whereas the opposite pattern seems to prevail for production based on traditional comparative advantage. The results of this study emphasize the importance of using disaggregated industry-level data when analysing the effects of foreign direct investment on home country investment. (Less)
Please use this url to cite or link to this publication:
https://lup.lub.lu.se/record/1513993
- author
- Braunerhjelm, Pontus and Oxelheim, Lars LU
- organization
- publishing date
- 2000
- type
- Contribution to journal
- publication status
- published
- subject
- in
- Journal of Common Market Studies
- volume
- 38
- issue
- 2
- pages
- 199 - 221
- publisher
- Wiley-Blackwell
- external identifiers
-
- scopus:0347074924
- ISSN
- 0021-9886
- DOI
- 10.1111/1468-5965.00217
- language
- English
- LU publication?
- yes
- id
- 6e65f7fb-dba4-45ee-86b8-be086516243b (old id 1513993)
- date added to LUP
- 2016-04-01 12:10:31
- date last changed
- 2022-01-26 23:53:04
@article{6e65f7fb-dba4-45ee-86b8-be086516243b,
abstract = {{The purpose of this article is to examine the effects of European integration on the location of investments by Swedish multinational corporations (MNCs). Evidence is presented about the extent to which European integration has attracted investment by Swedish MNCs, and whether foreign direct investment (FDI) is being undertaken at the expense of home country investment. In the empirical analysis, involving both OLS and iterative SUR techniques, a significant difference across industries has been confirmed. A substitutionary relationship between foreign and home country investment is found for more R&D-intensive production, whereas the opposite pattern seems to prevail for production based on traditional comparative advantage. The results of this study emphasize the importance of using disaggregated industry-level data when analysing the effects of foreign direct investment on home country investment.}},
author = {{Braunerhjelm, Pontus and Oxelheim, Lars}},
issn = {{0021-9886}},
language = {{eng}},
number = {{2}},
pages = {{199--221}},
publisher = {{Wiley-Blackwell}},
series = {{Journal of Common Market Studies}},
title = {{Does Foreign Direct Investment Replace Home Country Investment? The effect of European Integration on the Location of Swedish Investment}},
url = {{http://dx.doi.org/10.1111/1468-5965.00217}},
doi = {{10.1111/1468-5965.00217}},
volume = {{38}},
year = {{2000}},
}