SSE/EFI Working Paper Series in Economics and Finance
No 375:
Internationalization and Growth: Evidence from Sweden
Magnus Blomström ()
Abstract: Outward investment is a way of maximizing the rents on the
accumulated knowledge and skill of a country´s firms, or preserving them as
long as possible when the country itself has lost its comparative advantage
in their industries, and the industries, or parts of them must relocate.
This paper examines the internationalization of Swedish firms and
investigates the type of operations they move abroad. We find that Swedish
MNCs, in contrast to U.S. multinationals, expand their more advanced
activities abroad and keep the low wage operations at home. Presumably this
is because Sweden has lost its comparative advantage in highly advanced
production. We conclude that the home country effects of capital movements
in the form of foreign direct investment depend very much on the
macro-economic conditions in the investing country.
Keywords: Internationalization; Growth; Sweden; (follow links to similar papers)
JEL-Codes: O52; (follow links to similar papers)
18 pages, April 14, 2000
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- This paper is published as:
-
Blomström, Magnus, (2000), 'Internationalization and Growth: Evidence from Sweden', Swedish Economic Policy Review, Vol. 7 (1), pages 185-201
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