Working Paper Series
Multinational Firms, Technology and Location
Abstract: This paper analyzes a three-stage optimization problem in
which a firm chooses (i) its technology, by deciding on a level of R&D,
(ii) whether this technology is to be used in a domestic or in a foreign
plant and (iii) the quantity produced and sold on the market. If technology
transfer costs are low, "high-tech" or R&D-intensive firms tend to produce
abroad. At higher technology transfer costs, high-tech firms tend to
export. An empirical analysis using a data set of Swedish multinational
firms, confirms the latter prediction.
Keywords: Multinational Firms; R&D; Location; Empirical Analyses; (follow links to similar papers)
JEL-Codes: F23; L13; O33; (follow links to similar papers)
35 pages, March 12, 1999, Revised November 2, 2000
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- This paper is forthcoming as:
Norbäck, Pehr-Johan, 'Multinational Firms, Technology and Location', Journal of International Economics.
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