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

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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; agglomeration; distance; investment determinants; market size; prices

Document Type: Research Article

DOI: https://doi.org/10.1078/110468902400355651

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

Publication date: 2002-05-01

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