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European Integration and Geographical Concentration of Swedish Multinationals

Thomas Mathä

University of East Anglia Discussion Papers in Economics from School of Economics, University of East Anglia, Norwich, UK.

Abstract: This paper investigates whether European integration has an effect on the geographical concentration of Swedish multinationals' production inside the European Union. The results indicate that agglomeration and dispersion forces are present, and that the relative strength of these forces has been affected by the EU integration process. In particular, the European integration process has reduced intra-EU transaction costs, and thus the need of R&D intensive multinationals to engage in local production to fully appropriate the return of their assets. The results further suggest that EU integration has led Swedish MNEs to increase dispersion of production inside the European Union.

Keywords: ECONOMIC INTEGRATION; TRANSNATIONAL CORPORATIONS; ECONOMIC CONCENTRATION (search for similar items in EconPapers)
JEL-codes: F12 F15 F23 (search for similar items in EconPapers)
Pages: 29 pages
Date: 1999
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