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The Economic Research Institute, Stockholm School of Economics SSE/EFI Working Paper Series in Economics and Finance

No 3:
Home Country Effects of Foreign Direct Investment: Evidence from Sweden

Magnus Blomström () and Ari Kokko ()

Abstract: 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.

Keywords: Foreign investment; multinational firms; home country effects; Sweden; (follow links to similar papers)

JEL-Codes: F23; (follow links to similar papers)

30 pages, January 1994

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This paper is published as:
Blomström, Magnus and Ari Kokko, (1994), 'Home Country Effects of Foreign Direct Investment: Evidence from Sweden' in Globerman, S. (ed.) Canadian-Based Multinationals, University of Calgary Press.



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