This paper examines two broad issues related to foreign investment by Swedish multinationals: 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 labor between the...

The first part of the present paper summarizes the Swedish government's official assessment of the economic effects of membership in the European Union (SOU 1994:6, Sverige och Europa: En samhallsekonomisk konsekvensanalys.) The summary is intended as an objective review of the Swedish impact...

Sweden is home to remarkably many large, prosperous multinationals. We argue that this is partly the result of industrial policies that have been biased in favor of large firms, and an institutional setting where regulations and controls have facilitated investment abroad by Swedish firms, while...