Change search
CiteExportLink to record
Permanent link

Direct link
Cite
Citation style
  • apa
  • harvard1
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf
Essays on Regional Growth, Comparative Advantages and Foreign Direct Investments
KTH, School of Architecture and the Built Environment (ABE), Transport and Economics (closed 20110301).ORCID iD: 0000-0001-8377-1633
2010 (English)Doctoral thesis, comprehensive summary (Other academic)
Abstract [en]

This thesis consists of four essays, covering four different topics. The first essay investigates the relationship between inter-firm labor mobility and regional productivity growth. Previous studies have shown that density is positively correlated with growth. I claim that it is not density in itself, but rather the attributes associated with it that drives economic growth. One such attribute is the increased possibility for labor mobility and knowledge diffusion that follows when firms and individuals locate in close proximity to each other. This hypothesis is tested using density as an instrument for labor mobility. The result shows that labor mobility increases regional growth rates.

The second essay examines the relationship between agglomeration economies and relative wage costs in influencing location of multinational corporations. An inflow of firms to certain regions and industries is likely to increase demand for labor. If mobility of labor is low increased costs can be expected to deter additional inflows of firms, albeit agglomeration economies may compensate for higher wages. The empirical analysis finds that FDI has become increasingly sensitive to differences in wage costs across industrialized countries, but also that agglomeration economies related to knowledge externalities positively influences higher costs.

The third essay looks at the impact of FDI on home country investments. Previous research has been inconclusive as regards the effects on domestic investments. In this article, we show that this inconclusiveness can be explained at a disaggregated level as a function of the way industries are organized. We argue that a complementary relationship can be expected to prevail in vertically integrated industries, whereas a substitutionary relationship can be expected in horizontally organized production. The empirical analysis confirms a significant difference between the two categories of industry as regards the impact of outward FDI on domestic investment.

The fourth, and final, essay of this thesis analyses how increased R&D expenditures and market size influence the distribution of comparative advantage. Previous studies report ambiguous results and also refer to periods when markets were much more segmented and production factors less mobile. The empirical analysis comprises 19 OECD-countries and spans the period 1981 to 1999. It is shown how an increase in R&D-expenditures by one percentage point implies a three-percentage point increase in high-technology exports, whereas market size fails to attain significance. In addition, institutional factors influence the dynamics of comparative advantage.

Place, publisher, year, edition, pages
Stockholm: KTH , 2010. , 18 p.
Series
Trita-TEC-PHD, ISSN 1653-4468 ; 09-007
Keyword [en]
Agglomeration, agglomeration economies, dynamic comparative advantage, FDI, gross domestic investment, industry-specific effects, institutions, labor mobility, market size, R&D, regional growth, relative costs
National Category
Economics
Identifiers
URN: urn:nbn:se:kth:diva-11846ISBN: 978-91-85539-48-2 (print)OAI: oai:DiVA.org:kth-11846DiVA: diva2:284882
Public defence
2010-01-28, Flodissalen (F3), Lindstedtsvägen 26, Stockholm, 10:00 (English)
Opponent
Supervisors
Available from: 2010-01-11 Created: 2010-01-08 Last updated: 2012-02-23Bibliographically approved
List of papers
1. Agglomeration, Relative Wage Costs and Foreign Direct Investment: Evidence from Swedish MNCs 1974-1998
Open this publication in new window or tab >>Agglomeration, Relative Wage Costs and Foreign Direct Investment: Evidence from Swedish MNCs 1974-1998
2009 (English)In: Journal of Industry, Competition and Trade, ISSN 1566-1679, E-ISSN 1573-7012, Vol. 9, no 3, 197-217 p.Article in journal (Refereed) Published
Abstract [en]

This paper examines the relationship between agglomeration economies and relative wage costs in influencing location of multinational corporations. An inflow of firms to certain regions and industries is likely to increase demand for labor. If mobility of labor is low increased costs can be expected to deter additional inflows of firms, albeit agglomeration economies may compensate for higher wages. Despite its important policy implications this relationship has to our knowledge not been exposed to empirical testing. The empirical analysis finds that foreign direct investment has become increasingly sensitive to differences in wage cost across industrialized countries, but also that agglomeration economies related to knowledge externalities positively influences higher costs. The relative strength of these two forces impacts the spatial distribution of production.

Place, publisher, year, edition, pages
USA: Springer, 2009
Keyword
FDI, agglomeration, relative costs
National Category
Economics
Identifiers
urn:nbn:se:kth:diva-11836 (URN)10.1007/s10842-008-0042-1 (DOI)2-s2.0-68349128787 (Scopus ID)
Note
QC 20110208Available from: 2010-01-08 Created: 2010-01-08 Last updated: 2017-12-12Bibliographically approved
2. The Relationship Between Domestic and Outward Foreign Direct Investment: The Role of Industry-Specific Effects
Open this publication in new window or tab >>The Relationship Between Domestic and Outward Foreign Direct Investment: The Role of Industry-Specific Effects
2005 (English)In: International Business Review, ISSN 0969-5931, E-ISSN 1873-6149, Vol. 14, no 6, 677-694 p.Article in journal (Refereed) Published
Abstract [en]

Previous research has been inconclusive as regards the effect of outward foreign direct investment (FDI) on domestic investments. In this article, we show that this inconclusiveness can be explained at a disaggregated level as a function of the way industries are organized. Based on a simple theoretical framework including monitoring and trade costs, we argue that a complementary relationship can be expected to prevail in vertically integrated industries, whereas a substitutionary relationship can be expected in horizontally organized production. The empirical analysis confirms a significant difference between the two categories of industry as regards the impact of outward FDI on domestic investment. The results may thus have profound policy implications.

Place, publisher, year, edition, pages
Amsterdam: Elsevier, 2005
Keyword
FDI, gross domestic investment, industry-specific effects
National Category
Economics and Business
Identifiers
urn:nbn:se:kth:diva-11838 (URN)10.1016/j.ibusrev.2005.09.004 (DOI)000235834000002 ()2-s2.0-29544452526 (Scopus ID)
Note
QC 20101004Available from: 2010-01-08 Created: 2010-01-08 Last updated: 2017-12-12Bibliographically approved
3. Can Countries Create Comparative Advantages?: R&D expenditures, high-tech exports and country size in 19 OECD countries, 1981-1999
Open this publication in new window or tab >>Can Countries Create Comparative Advantages?: R&D expenditures, high-tech exports and country size in 19 OECD countries, 1981-1999
2008 (English)In: International economic journal, ISSN 1016-8737, E-ISSN 1743-517X, Vol. 22, no 1, 95-111 p.Article in journal (Refereed) Published
Abstract [en]

This paper analyses how increased R&D expenditures and market size influence the distribution of comparative advantage. Previous studies report ambiguous results and also refer to periods when markets where much more segmented and production factors less mobile. The empirical analysis comprises 19 OECD-countries and spans the period 1981 to 1999. It is shown how an increase in R&D-expenditures by one percentage point implies a three-percentage point increase in high-technology exports, whereas market size fails to attain significance. In addition, institutional factors influence the dynamics of comparative advantage.

Place, publisher, year, edition, pages
Kentucky: Routledge, 2008
Keyword
Dynamic comparative advantage, R&D, market size, institutions
National Category
Economics
Identifiers
urn:nbn:se:kth:diva-11839 (URN)10.1080/10168730801887026 (DOI)2-s2.0-40449089405 (Scopus ID)
Note
QC 20110208Available from: 2010-01-08 Created: 2010-01-08 Last updated: 2017-12-12Bibliographically approved

Open Access in DiVA

fulltext(143 kB)1202 downloads
File information
File name FULLTEXT01.pdfFile size 143 kBChecksum SHA-512
6b2a3ce7dd2bfd6ccbc467dd2a7a09ce1571e1a02713db53ae8f941d9fb72d14597810f51710a106a2cd3c88a405784e486d610f91fbb1bb8203d031e5d4bdf6
Type fulltextMimetype application/pdf

Authority records BETA

Thulin, Per

Search in DiVA

By author/editor
Thulin, Per
By organisation
Transport and Economics (closed 20110301)
Economics

Search outside of DiVA

GoogleGoogle Scholar
Total: 1202 downloads
The number of downloads is the sum of all downloads of full texts. It may include eg previous versions that are now no longer available

isbn
urn-nbn

Altmetric score

isbn
urn-nbn
Total: 889 hits
CiteExportLink to record
Permanent link

Direct link
Cite
Citation style
  • apa
  • harvard1
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf