Strategic Investments in the Pulp and Paper Industry: A Count Data Regression Analysis
Umea Economic Studies Working Paper No. 536
31 Pages Posted: 9 May 2001
Date Written: May 2000
The effects of price and market size variables on the investment propensities in the pulp and paper industry are analyzed. A panel of 15 European countries for the time period 1984 - 1997 is used in the regression analysis. We find that the wages, the $US/ECU$ exchange rate, the price of paper and the installed production capacity are the main determinants of strategic investments in this industry. There are no - or only very small - effects from our measures of market size.
Keywords: Lumpy Investments, Prices, Market Size, Agglomeration, Distance
JEL Classification: L11, L16
Suggested Citation: Suggested Citation