Firm relocation and firm profits : Evidence from the Swedish wholesale trade sector

This study analyses the effects of firm relocation on firm profits, using longitudinal data on Swedish limtied liability firms and employing a difference-in-differnce propensity score method in the empirical analysis. Using propensity score matching, the pre-relocalization differneces between relocating and non-relocating firms are balanced. In addition to that, a difference-in-difference estimator is employed in order to control for all time-invariant unobserved heterogeneity among firms. For matching, nearest neighbour matching, using the one-, two- and three nearest neighbours is employed. The balanacing results indicate that matching achieves a good balance, and that similar relocating and non-relocating firms are being compared. The estimated average treatment on the treatment effects indicate thats relocations has a significant effect on the profits of the relocating firms. In other words, firms taht relocate increase their profits significantly, in comparison to what the profits would be had the firms not relocated. This effect is estimated to vary between 3 to 11 percentage points, depending on the lenght of the analysed period after relocation. 

Proceedings from the 2nd seminar on Development of Modular Products : December 13-14, 2004, Campus Framtidsdalen, Dalarna University, Sweden

Companies are focusing on efforts increasing the overall efficiency at the same time as the ability to meet customer needs becomes even more important. There is a need to improve the organisation and the product design at the same time through the visualisation of how a product family design should be performed in order to adapt to customers, company internal issues, and long-term strategy. Therefore, there is a need for qualified personnel in today’s companies with the knowledge of product development and modularity. The graduate course Development of Modular Products at Högskolan Dalarna has the objective to provide such knowledge. As a part of the course, each student will individually perform extensive research within a chosen area with respect to Product Development and Modularity. This proceeding is the result of the students own work and was presented during a two day seminar at Dalarna University. The contents of the papers cover many areas, from the identification of customer needs to cost effective manufacturing, and benefits of modularisation. The reader of this proceeding will not only benefit from many areas within Product Development and Modularity but also from the colour of many cultures. In this proceeding, students from nine countries are represented (Bangladesh, China, Costa Rica, Germany, Holland, India, Luxembourg Nigeria, and Sweden). Enjoy the reading.