Large investments in the pulp and paper industry: a count data regression analysis

Authors: Bergman M.A.^{1, *}; Johansson P.²

Source: Journal of Forest Economics, Volume 8, Number 1, May 2002 , pp. 29-52(24)

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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 1988-1997 is used in the regression analysis. We find the wages, the USD/ECU exchange rate, the price of paper and the installed production capacity to be the main determinants of large investments in this industry. Our measure of market size has no - or only very small - effects.

Keywords: Lumpy investments; prices; market size; agglomeration; distance; investment determinants

Language: English

Document Type: Research article

Affiliations: 1: ECON - Centre for Economic Analysis, Stockholm, Sweden 2: IFAU - Institute for Labour Market Policy Evaluation, Uppsala, Sweden *

Publication date: 2002-05-01