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on International Finance |
| By: | Christian Fons-Rosen (Universitat Pompeu Fabra and Barcelona Graduate School of Economics); Sebnem Kalemli-Ozcan (University of Maryland, CEPR, and NBER); Bent E. Sorensen (University of Houston and CEPR); Carolina Villegas-Sanchez (ESADE - Universitat Ramon Llull); Vadym Volosovych (Erasmus University Rotterdam and ERIM Research Institute of Management) |
| Abstract: | We quantify the causal effect of foreign investment on total factor productivity (TFP) using a new global firm-level database. Our identification strategy relies on exploiting the difference in the amount of foreign investment by financial and industrial investors and simultaneously controlling for unobservable firm and country-sector-year factors. Using our well identified firm level estimates for the direct effect of foreign ownership on acquired firms and for the spillover effects on domestic firms, we calculate the aggregate impact of foreign investment on country-level productivity growth and find it to be very small. |
| Keywords: | Multinationals, FDI, Knowledge Spillovers, Selection, Productivity |
| JEL: | E32 F15 F36 O16 |
| Date: | 2013–04–11 |
| URL: | http://d.repec.org/n?u=RePEc:dgr:uvatin:2013058&r=ifn |
| By: | Valentina Bruno; Hyun Song Shin |
| Abstract: | We investigate global factors associated with cross-border capital flows. We formulate a model of gross capital flows through the international banking system and derive a closed form solution that highlights the leverage cycle of global banks as being a prime determinant of the transmission of financial conditions across borders. We then test the predictions of our model in a panel study of 46 countries and find that global factors dominate local factors as determinants of banking sector capital flows. |
| JEL: | F32 F34 F36 G21 |
| Date: | 2013–05 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:19038&r=ifn |
| By: | Randall K. Filer; Dragana Stanisic |
| Abstract: | The current literature shows a significant negative impact of terrorism on countries' economies. We explore this relationship in more detail. Using an unbalanced panel of over 160 countries for up to 25 years and the Global Terrorism Database (GTD) we show a decrease in FDI as a consequence of terrorism. We also find evidence that FDI flows are more sensitive to terrorism than either portfolio investments or external debt flows. Finally, we test the hypothesis that terrorism has negative spill-over effects on FDI flows into neighboring countries and find evidence that cultural but not geographical closeness matters. |
| Keywords: | capital flow; terrorism; FDI; spill-over effect; |
| JEL: | D74 H56 |
| Date: | 2013–01 |
| URL: | http://d.repec.org/n?u=RePEc:cer:papers:wp480&r=ifn |