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Working Paper No. 512

Multinational Firms, Technology and Location

Working Paper
Referens
Norbäck, Pehr-Johan (1999). ”Multinational Firms, Technology and Location ”. IFN Working Paper nr 512. Stockholm: Institutet för Näringslivsforskning.

Författare
Pehr-Johan Norbäck

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 analyses using a data set of Swedish multinational firms, confirms the latter prediction.

Pehr-Johan Norbäck

+46 (0)8 665 4522
+46 (0)73 574 3379
pehr-johan.norback@ifn.se