Working Paper No. 512

Multinational Firms, Technology and Location

Published: March 23, 1999, Revised June 19, 2000.Pages: 46Keywords: Multinational firms, R&D, Location, Empirical analysesJEL-codes: L13, F23, O33

Multinational Firms, Technology and Location Pehr-Johan Norbäck


This paper analyzes a three-stage optimization problem in which a firm chooses (i) its technology, by deciding on a level of R&D, (ii) whether this technology is to be used in a domestic or in a foreign plant and (iii) the quantity produced and sold on the market. If technology transfer costs are low, "high-tech" or R&D-intensive firms tend to produce abroad. At higher technology transfer costs, high-tech firms tend to export. An empirical analyses using a data set of Swedish multinational firms, confirms the latter prediction.

Pehr-Johan Norbäck

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Martin Ljunge, IFN, is the author of a chapter, "Trust promotes health: addressing reverse causality by studying children of immigrants", in a new book edited by Sherman Folland and Eric Nauenberg. The cutting edge of research is presented, covering the ever-expanding social capital field.

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