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Strategic Investments in the Pulp and Paper Industry: A Count Data Regression Analysis

Author

Listed:
  • Bergman, Mats A.

    (The Swedish Competition Authority)

  • Johansson, Per

    (Office of Labour Market Policy Evaluation (IFAU))

Abstract

This paper analyses the effects of price and market size variables on the investment propensities in the pulp and paper industry. A panel of 15 European countries in the time period 1984 - 1997 is used in the regression analysis. We find the wages, the US/ECU exchange rate, the price of paper and the installed production capacity to be the main determinants of strategic investments in this industry. Our measure of market size have no - or only very small - effects.

Suggested Citation

  • Bergman, Mats A. & Johansson, Per, 2000. "Strategic Investments in the Pulp and Paper Industry: A Count Data Regression Analysis," Working Paper Series 536, Research Institute of Industrial Economics.
    • Handle: RePEc:hhs:iuiwop:0536
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    More about this item

    Keywords

    Lumpy investments; Prices; Market size; Agglomeration; Distance; Investment determinants;
    All these keywords.

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • E22 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Investment; Capital; Intangible Capital; Capacity
    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • L73 - Industrial Organization - - Industry Studies: Primary Products and Construction - - - Forest Products

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