Domestic and Foreign Investment by Swedish Multinationals

21 Pages Posted: 14 Jul 2020

See all articles by Roger Svensson

Roger Svensson

Research Institute of Industrial Economics (IFN)

Date Written: November 21, 1993

Abstract

In the 1980s, there was a huge increase in the outflow of foreign direct investment from Sweden to the EC. The EC market is the most important for Swedish firms and it is during the last decade that EC has undergone major changes. This paper uses a unique data set on individual Swedish MNCs for the years 1978, 1986 and 1990 to determine how FDIs in the EC have affected firms' propensity to invest in the home country. The model includes a financial constraint for MNCs which is consistent with the assumption that different investment projects are competing for scarce funds.

Keywords: Multinationals, foreig direct investment, domestic investment

JEL Classification: F21, F23

Suggested Citation

Svensson, Roger, Domestic and Foreign Investment by Swedish Multinationals (November 21, 1993). IFN Working Paper No. 391, 1993, Available at SSRN: https://ssrn.com/abstract=3632387 or http://dx.doi.org/10.2139/ssrn.3632387

Roger Svensson (Contact Author)

Research Institute of Industrial Economics (IFN) ( email )

Box 55665
Grevgatan 34, 2nd floor
Stockholm, SE-102 15
Sweden
+46-8-6654549 (Phone)
+46-8-6654599 (Fax)

HOME PAGE: http://www.ifn.se

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
21
Abstract Views
111
PlumX Metrics