Multinational Firms, Technology and Location

Pehr-Johan Norbäck

No 512, Working Paper Series from Research Institute of Industrial Economics

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.

Keywords: Multinational Firms; R&D; Location; Empirical Analyses (search for similar items in EconPapers)
JEL-codes: F23 L13 O33 (search for similar items in EconPapers)
Pages: 35 pages
Date: 1999-03-12, Revised 2000-11-02
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Forthcoming in Journal of International Economics.

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Journal Article: Multinational firms, technology and location (2001)
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Persistent link: https://EconPapers.repec.org/RePEc:hhs:iuiwop:0512

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