2011

Subsidizing Away Exports? A Note on R&D-policy Towards Multinational Firms

Särtryck nr 2011:16

Författare: Pehr-Johan NorbäckÅr: 2011 Publikation: Journal of Industry, Competition and Trade Årgång (nr): 11 (1) Sidor: 25–42
Artikeln online (behörighet kan krävas)


In this paper, I investigate whether instead of strengthening home-based production, government R&D-subsidies can induce R&D-intensive firms to locate production abroad. Investigating firm-level data on Swedish MNEs, however, I find no evidence of such relocation. R&D subsidies rather tend to encourage export production at the expense of foreign production. The theory presented suggests that this is consistent with technology transfer costs, which outweigh trade costs for physical goods.


Referens:
Norbäck, Pehr-Johan (2011), "Subsidizing Away Exports? A Note on R&D-policy Towards Multinational Firms". Journal of Industry, Competition and Trade 11(1), 25–42.

Pehr-Johan Norbäck

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