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Multinationals and Plant Survivals in Swedish Manufacturing

Roger Bandick ()

No 2007:7, Working Papers from Örebro University, School of Business

Abstract: Are multinational enterprises MNEs more likely than none-MNEs, owing to their footlose charater, to close down their plants? The results from using a panel o all Swedish manufacturing plants over the period 1993 and 2002 suggest that MNE plants, and in particular Swedish MNE plants, have higher probability to exit the market than non-MNE plants. The outcome is robust controlling for other variables affecting the survival rates. Among non-MNE plants the probabilities of exit is higher in non-exporting firms than in exporting firms. Moreover, the increased forefin presence in swedish manufacturing seems, due to intesified competition, to have led to higher exit rates of plants in non-exporting non-MNEs. Plants of globally engaged indigenous firms, such as plants of Swedish MNEs and exporting non-MNEs, appear. on the other hand, to have been unaffected of the increased foregin presence.

Keywords: Survival analysis; multinational enterprises; foregin ownership (search for similar items in EconPapers)
JEL-codes: C41 F23 J31 (search for similar items in EconPapers)
Pages: 19 pages
Date: 2007-11-01
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