Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/94803 
Year of Publication: 
1990
Series/Report no.: 
IUI Working Paper No. 284
Publisher: 
The Research Institute of Industrial Economics (IUI), Stockholm
Abstract: 
In a world with multinational companies (MNC's) changes such as those implied by the realization of EC's internal market will affect the locational choice made by geographically mobile MNC's outside the EC. The reason is that any change which affects the competitive advantage of EC producers relative to non-EC producers will alter the choice between MNC exports to and local production in the EC. This paper presents an empirical analysis of this issue. It uses comprehensive micro data on Swedish MNC production and trade for the period 1965-86 to test hypotheses regarding the effects of European trade policy on the locational choice of Swedish MNC's in that period. The results show that being part of a trade liberalization area strongly stimulates exporting relative to producing abroad by MNC's. It is suggested that this should be relevant to an evaluation of the effects of the EC internal market on non-EC members like Sweden.
Subjects: 
Multinational Firms
Geographical location
European trade policy
JEL: 
F13
F23
R30
Document Type: 
Working Paper

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