Choice of location for investments in the European paper industry: the impact of wastepaper

Document identifier:
Access full text here:10.1016/S0921-3449(01)00083-0
Keyword: Social Sciences, Economics and Business, Economics, Samhällsvetenskap, Ekonomi och näringsliv, Nationalekonomi
Publication year: 2001
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SDG 2 Zero hunger
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This paper identifies and estimates the relative impact that factor input prices, output market size and agglomeration effects have on the choice of location for investment projects in the European pulp and paper industry, with special focus on the price of waste paper A conditional logit model was developed to fit investment projects across 16 European countries for the period 1985-95. The results suggest that factor input prices, in general, and the price for waste paper in particular, are neither a statistical nor an economic significant location determinant for a paper manufacturer. Furthermore, the results suggest that market size and agglomeration effects are considered more important than the price of raw material when an investment site is chosen.


Robert Lundmark

Luleå tekniska universitet; Samhällsvetenskap
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