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Large investments in the pulp and paper industry: a count data regression analysis
Authors:Mats A. Bergman   Per Johansson  M.A. Bergman
Affiliation:1. ECON - Centre for Economic Analysis, Stockholm, Sweden;2. IFAU - Institute for Labour Market Policy Evaluation, Uppsala, Sweden;1. Université de Lorraine, Université de Strasbourg, AgroParisTech, CNRS, INRA, BETA, 54000, Nancy, France;2. Economic Development Initiatives (EDI) Limited, High Wycombe, United Kingdom;3. Université Clermont Auvergne, CNRS, IRD, CERDI, 63000, Clermont-Ferrand, France;4. African Development Bank (AfDB), Abidjan, Côte d’Ivoire;1. Higashi-Mokoto Meat Inspection Center, Okhotsk Sub-Prefectural Bureau, Hokkaido Prefectural Government, 72-1 Chigusa, Higashi-Mokoto, Ozora Town, Abashiri-Gun, Hokkaido 099-3231, Japan;2. Veterinary Epidemiology Unit, Division of Health and Environmental Sciences, Department of Veterinary Medicine, School of Veterinary Medicine, Rakuno Gakuen University, 582 Bunkyodai Midorimachi, Ebetsu, Hokkaido 069-8501, Japan;1. Smart Grid Energy Research Center, UCLA, Los Angeles, United States;2. Center for Green Buildings and Cities, Harvard University, Cambridge, United States;1. Kaiser Permanente Southern California, 100 S Los Robles, Office 04R02, Pasadena, CA 91101, United States;2. Johns Hopkins Bloomberg School of Public Health, Department of Population Family and Reproductive Health, Office E4622, 601 Wolfe Street, Baltimore, MD 21205, United States
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
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