DP931 Home Country Effects of Foreign Direct Investment: Evidence from Sweden

Author(s): Magnus Blomström, Ari Kokko
Publication Date: April 1994
Keyword(s): Foreign Investment, Home Country Effects, Multinational Firms, Sweden
JEL(s): F23
Programme Areas: International Trade and Regional Economics
Link to this Page: cepr.org/active/publications/discussion_papers/dp.php?dpno=931

This paper examines two broad issues related to foreign investment by Swedish multinational corporations (MNCs): first, the effects of outward foreign direct investment on domestic investment, exports and employment, and second, the effects on the domestic economy from the increasing division of labour between the parents and foreign affiliates of Swedish MNCs. The paper summarizes and synthesizes the existing empirical evidence on these matters (much of which has hitherto only been available in Swedish) and discusses some possible long-run effects that have received little attention in the literature.