Globalization, Increased Competition and the Development of Firms

Firms both in Sweden and abroad have been exposed to increased competition in many forms. The development of globalization forces domestic firms to adapt to a tougher business climate, while trade reforms also bring new import and export possibilities. This project primarily consisted of empirical studies which evaluated the effects of different types of increased competition, such as trade reforms, import-based competition and higher electricity prices during the 21th century. The studies explored the effects of these phenomena on firms’ choice of technology, trade patterns, size and productivity. One purpose with this project was to contribute to the understanding of how competition affects firms’ technological development and employment, which in turn may provide beneficial knowledge for future economic reforms.