Pehr-Johan Norbäck: The Research Institute of Industrial Economics, Postal: Box 5501, SE-114 85 Stockholm, Sweden
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.
35 pages, First version: March 12, 1999. Revised: June 19, 2000. Earlier revisions: November 2, 2000.
Full text files
iuiwop0512.pdf Full text
Questions (including download problems) about the papers in this series should be directed to Elisabeth Gustafsson ()
Report other problems with accessing this service to Sune Karlsson ().
This page generated on 2018-01-23 23:34:25.