Scandinavian Working Papers in Economics
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Research Institute of Industrial Economics (IFN) Working Paper Series

No 536:
Strategic Investments in the Pulp and Paper Industry: A Count Data Regression Analysis

Mats A. Bergman () and Per Johansson

Abstract: This paper analyses the effects of price and market size variables on the investment propensities in the pulp and paper industry. A panel of 15 European countries in the time period 1984 - 1997 is used in the regression analysis. We find the wages, the US/ECU exchange rate, the price of paper and the installed production capacity to be the main determinants of strategic investments in this industry. Our measure of market size have no - or only very small - effects.

Keywords: Lumpy investments; Prices; Market size; Agglomeration; Distance; Investment determinants; (follow links to similar papers)

JEL-Codes: D24; E22; L11; L73; (follow links to similar papers)

31 pages, September 25, 2000

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