Mats A. Bergman
() and Per Johansson
Mats A. Bergman: The Swedish Competition Authority, Postal: SE-103 85 Stockholm
Per Johansson: Office of Labour Market Policy Evaluation (IFAU), Postal: SE-751 20 Uppsala
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.
31 pages, September 25, 2000
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