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on International Finance |
| By: | Agnès Bénassy-Quéré; Yeganeh Forouheshfar |
| Abstract: | We study the implication of a multipolarization of the international monetary system on cross-currency volatility. More specifically, we analyze whether the internationalization of the yuan could modify the impact of asset supply and trade shocks on the euro-dollar exchange rate, within a three-country, three-currency portfolio model. Our static model shows that the internationalization of the yuan (defined as a rise in the yuan in international portfolios) would be either neutral or stabilizing for the euro-dollar rate, whatever the exchange-rate regime of China. Moving to a dynamic, stock-flow framework, we show that the internationalization of the yuan would make exchange-rate variations more efficient to stabilize net foreign asset positions after a trade shock. |
| Keywords: | China;yuan;exchange-rate regime;euro;dollar |
| JEL: | F31 F33 |
| Date: | 2013–05 |
| URL: | http://d.repec.org/n?u=RePEc:cii:cepidt:2013-14&r=ifn |
| By: | Vivien D. Procher (Jackstaedt Center of Entrepreneurship and Innovation Research, Schumpeter School of Business and Economics, University of Wuppertal); Diemo Urbig (Jackstaedt Center of Entrepreneurship and Innovation Research, Schumpeter School of Business and Economics, University of Wuppertal); Christine Volkmann (Jackstaedt Center of Entrepreneurship and Innovation Research, Schumpeter School of Business and Economics, University of Wuppertal) |
| Abstract: | For a sample of 1243 European companies, we analyse the link between firm type and foreign direct investment (FDI) locations. We find substantial empirical evidence that being a family firm does not only affect the overall propensity for FDI but that this effect is also specific to target regions. Overall, family firms invest more than managerial-led firms, particularly in Europe and North America. Furthermore the BRIC countries Brazil, Russia, India and China do not constitute a homogenous attractiveness cluster for FDI. |
| Keywords: | foreign direct investment, family firms, BRIC |
| JEL: | D21 F23 L22 |
| Date: | 2013–06 |
| URL: | http://d.repec.org/n?u=RePEc:bwu:schdps:sdp13004&r=ifn |
| By: | Prettner, Klaus; Strulik, Holger |
| Abstract: | We investigate the effects of demographic change and human capital accumulation on trade and productivity of domestic firms. In so doing we integrate a micro-founded education and fertility decision of households into a model of international trade with firm heterogeneity. Our framework leads to four testable implications: i) the export share of a country increases in the education level of its population, ii) the export share of a country decreases in the birth rate of its population, iii) the average profitability of firms increases in the education level of a country, iv) the average profitability of firms decreases in the birth rate of a country. We find that all four implications are supported by empirical evidence for a panel of OECD countries from 1960 to 2010. Our results suggest that investments in human capital accumulation, especially in higher education, are an important determinant of a country's international competitiveness. Furthermore, falling birth rates need not be a serious concern with respect to productivity and international competitiveness of countries. -- |
| Keywords: | firm heterogeneity,international competitiveness,education,fertility decline |
| JEL: | F12 F14 I20 J11 |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:cegedp:159&r=ifn |