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Multinationals and plant survival in Swedish manufacturing

Roger Bandick ()

Discussion Papers from University of Nottingham, GEP

Abstract: Are multinational enterprises, MNEs, more likely than non-MNEs to close down their plants due to their footloose character? The results from using a panel of all Swedish manufacturing plants over the period 1993 and 2002 suggest that MNE plants, in particular Swedish MNE plants, have a higher probability of exiting 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 are higher in non-exporting firms than in exporting firms. Moreover, the increased foreign presence in Swedish manufacturing seems to have led to higher exit rates of plants in non-exporting non-MNEs while plants of globally engaged indigenous firms appear to have been unaffected by the increased foreign presence.

Keywords: Survival analysis; multinational enterprises; foreign ownership (search for similar items in EconPapers)
Date: 2007
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Working Paper: Multinationals and Plant Survivals in Swedish Manufacturing (2007) Downloads
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