Magnus Lodefalk

Örebro University (+ Ratio and the Global Labor Organization)

Business angels dominate early-stage investment in firms, but research on their effects on firms is scarce and limited by sample selection. To address sample selection, we propose using population data and we develop an algorithm for identifying business angel investments in such data. We illustrate this novel approach by applying it to detailed an...

We examine if international trade improves labor market integration of immigrants in Sweden. Immigrants participate substantially less than natives in the labor market. However, trading with a foreign country is expected to increase the demand for immigrants from that country. By hiring immigrants, a firm may access foreign knowledge and networks n...

Protectionism and anti-globalization tides have been rising already before the COVID-19 pandemic, with Brexit and the China-U.S. trade war, as two examples. A continued disruption to global trade, investment and value chains could worsen global development. Economic recovery will require restoring firms’ ability to trade, offshore and invest global...

We examine if international trade improves labor market integration of immigrants in Sweden. Immigrants participate substantially less than natives in the labor market. However, trading with a foreign country is expected to increase the demand for immigrants from that country. By hiring immigrants, a firm may access foreign knowledge and networks n...

Services play an increasingly important role in production, employment and international trade but are subject to substantially higher trade costs relative to manufactured goods. Knowledge of how these trade costs can be mitigated is important for facilitating trade of services. In this paper, we analyze the role of immigrant employees as facilitat...

We perform a granular analysis of Swedish labor market dynamics, using matched employer employee and firm level trade data for Sweden over a 15-year period. The employment share in firms that are directly exposed to international trade has decreased, due to a shift in employment towards personal and public services. Analyzing the dynamics, we find...

Family firms are often considered characteristically different from non-family firms. However, our understanding of family firms suffers from an inability to identify them in total population data; information is rarely available regarding owners, their kinship, and their involvement in firm governance. We present a method for identifying domiciled...

Aktiebolag som affärsänglar investerar i blir med högre sannolikhet snabbväxande företag, s k gasellföretag, jämfört med ett slumpmässigt valt aktiebolag. Resultatet håller även efter att affärsänglarnas företag jämförts med liknande ”tvillingföretags” tillväxt. Detta kan indikera att det är affärsänglarna som bidrar och hjälper till att utveckla f...

We examine the heterogeneous productivity impacts of hiring top workers on small and medium-sized enterprises, exploiting matched employer–employee panel data and employing within-firm as well as matching and difference-in-difference estimators. The results provide robust evidence that the productivity impact is stronger for firms with higher absor...

We exploit information on ownership, management and kinship to study the representation of women in top management teams in Swedish family and non-family firms among domiciled limited liability firms over the years 2004 to 2010. The share of female top managers is analysed across listed and non-listed firms as well as across industries. We then est...

We exploit information on ownership, management and kinship to study the representation of women in top management teams in Swedish family and non-family firms among domiciled limited liability firms over the years 2004 to 2010. The share of female top managers is analysed across listed and non-listed firms as well as across industries. We then est...

In the OECD countries, the decline of manufacturing and its employment implications have long been matters of concern. Recently, policymakers in several countries have set out to achieve reindustrialization. The servicification of firms is related to these concerns and aspirations. However, servicification and particularly its role in trade policy...

We examine the link between new employees in leading positions and subsequent productivity in small- and medium-sized enterprises (SMEs). Managers and professionals are likely to possess important tacit knowledge. They are also in a position to influence the employing firm. Exploiting rich and comprehensive panel data for Sweden in the 2001-2010 pe...

We examine the role of migrants in trade using a firm-level approach. We exploit a new employer–employee panel for Sweden, which encompasses close to 600,000 full-time employees, approximately 12,000 firms and data for 176 countries for the period 1998–2007. The resulting analysis provides novel firm-level evidence on the trade-migration relationsh...

De små och medelstora företagen står för en stor del av jobbskapandet i Sverige. Denna rapport tyder på att rekrytering av specialister, särskilt från internationella bolag, är viktig för utvecklingen i små och medelstora företag och därmed för svensk tillväxt. Kunskapsöverföring för tillväxt Sambanden mellan produktivitet och rekrytering av nyckel...

En kommande brexit kommer att få politiska och ekonomiska konsekvenser, inte minst genom minskad utrikeshandel och försämrat ekonomiskt samarbete i Europa. Vi diskuterar de ekonomiska konsekvenserna av en brexit, med fokus på handel och handelspolitik. Förmodligen har de negativa ekonomiska konse- kvenserna underskattats eftersom den handelshämmand...

The UK leaving the European Union, a 'Brexit,' would have economic and political implications. One of the most profound economic impacts would be on trade—the EU is the UK's most important trade partner, with approximately half of UK total trade. A Brexit would imply looser economic integration between the UK and EU. In addition to the trade barrie...

We analyze the relation between temporary expats in firms and exports, exploiting micro-level panel data on migration and trade. Temporary expats are positively associated with exports. Their link with export intensity is larger for services than for merchandise and for exports of differentiated services and merchandise than for exports of homogene...

The Government of India has extended the 'Tourist Visa on Arrival' scheme-now expected to be renamed 'Visa Online (ETA)' scheme-from five countries in 2010 to 44 countries in 2014. In this article, Natasha Agarwal and Magnus Lodefalk highlight some of the limitations in the design and implementation of the scheme, and make recommendations for maxim...

The manufacturing sector in OECD countries increasingly buys, produces, sells and exports services. This is now known as the servicification of manufacturing. This column, using firm-level data from Sweden, shows that as firms’ share of in-house services increases, so does their export intensity. The increasing complementarities between services an...

The decline of manufacturing in OECD countries and job implications has been a long-time concern. Recently, policy-makers have set out for reindustrialisation. A trend related to these concerns and aspirations is the servicification of manufacturing – the increase in use, produce and sales of services. However, servicification of firms and its role...

This study formalizes the idea that that the world can become ‘smaller’ through firms’ strategic trade-related decisions. We investigate whether firm investment in obtaining access to foreign networks impacts exports of services by estimating a fixed effects panel model on a comprehensive firm-level dataset for Sweden. In particular, we examine inv...

This paper takes as its point of departure the unique position recently adopted by Swedish policymakers emphasising migration as a tool to increase trade. We attempt to empirically scrutinise this position. Our results demonstrate that migrants stimulate exports, especially along the extensive product margin of trade and for differentiated products...

Manufacturing firms increasingly focus on services. This trend is evident in their composition of input, in-house production and seemingly also in total sale. Firms’ services intensity may affect their productivity, and thereby competitiveness abroad. Services are also instrumental in connecting to the foreign market and can help firms to different...

There are signs that manufacturing is becoming increasingly focused on services; this process is known as servicification. Despite suggestive evidence, large gaps remain in our knowledge regarding this process. This paper contributes to closing these gaps by discussing the phenomenon, arriving at some conjectures and examining them empirically. Com...

Migration has been associated with higher levels of trade. Previous studies interpret this as evidence of migrants’ ability to lower trade costs. Nevertheless, no study has investigated the impact of migrants on firms’ foreign trade. Thus, they fail to both provide evidence on the role that migrants may play in lowering firms’ trade costs, and exac...

The manufacturing industry in industrialised countries is often argued to servicify - use and sell more services - but knowledge is poor. We examine the phenomenon using detailed and com-prehensive micro level data at both the firm and enterprise group level for Sweden (1997-2006). We find that manufacturing is servicifying substantially. Services...

IntroductionMethod and ScenariosThe World Economy Pre- and Post-LiberalisationThe Global Economic Implications of the RoundConclusions and Final CommentsReferences

Though the Baltic Sea countries have displayed substantial reform-facilitated growth and trading activity over the last decade, significant trade barriers still exist. We analyse their implications, using a CGEmodel. Besides the “usual suspects” (tariffs, subsidies, and service barriers) and trade facilitation, we address non-tariff-measures (NTM)...

In this study the key elements of the WTO Doha Round are simulated and the main implications for international trade and national income are analysed. Based on negotiation information, three scenarios are designed. All scenarios encompass goods, services and agricultural liberalisation as well as trade facilitation. For goods liberalisation, a so-c...

In this study the key elements of the WTO Doha round are simulated and the main im- plications for international trade and national income are analysed. Based on negotiation positions at the recent Hong Kong ministerial conference, a number of Doha scenarios are carefully designed and implemented. All scenarios encompass goods, services and agricul...

Since the Earth Summit in Rio 1992, several calls have been made for a world environmental organisation (WEO), and only during the last year, in the run-up to Rio+10, five more have been added. In total, we have found 17 proposals for a WEO. We review, compare, and briefly discuss rationales, models, tasks, organisational set-up, relations to...

Manufacturing firms are increasingly focusing on services. This trend is evident in their composition of input, in-house production and seemingly also in total sale. Manufacturing firms" services intensity is likely to affect productivity and thereby their competitiveness abroad. However, only bits and pieces of the relation between services and ma...