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

See all articles by Mats Bergman

Mats Bergman

Södertörn University, Stockholm

Per Johansson

IFAU - Institute for Labour Market Policy Evaluation; Uppsala University - Department of Economics; IZA Institute of Labor Economics

Date Written: May 2000

Abstract

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

Bergman, Mats A. and Johansson, Per, Strategic Investments in the Pulp and Paper Industry: A Count Data Regression Analysis (May 2000). Umea Economic Studies Working Paper No. 536, Available at SSRN: https://ssrn.com/abstract=269344 or http://dx.doi.org/10.2139/ssrn.269344

Mats A. Bergman

Södertörn University, Stockholm ( email )

Alfred Nobels allé 7, Flemingsberg
Stockholm, Stockholm 14189
Sweden

Per Johansson (Contact Author)

IFAU - Institute for Labour Market Policy Evaluation ( email )

Box 513
751 20 Uppsala
Sweden
+ 46 18 471 70 86 (Phone)
+ 46 18 471 70 71 (Fax)

Uppsala University - Department of Economics ( email )

Uppsala, 751 20
Sweden

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

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