Financial constraints and foreign direct investment: firm-level evidence

Buch, Claudia M.; Kesternich, Iris; Lipponer, Alexander; Schnitzer, Monika

doi:10.1007/s10290-013-0184-z

Cited by 71 publications

(62 citation statements)

References 29 publications

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“…Buch et al (2014) reported similar results. Financial constraints have a greater effect on larger and/or more productive firms that are more likely to engage in FDI decisions.…”

Section: Introductionsupporting

confidence: 63%

“…As stated by Campello et al (2010), the systemic financial crisis that began in 2007 has forced financially constrained firms to drop investment projects,whereas unconstrained firms have been able to continue with such projects. Similarly, Buch et al (2014) …”

Section: Introductionmentioning

confidence: 98%

“…These authors reported that cross-border relationships between Chinese and foreign firms help private domestic firms to bypass the financial and legal obstacles they face at home. Thus, firms may need external financing to face the costs of entering foreign markets and expanding the business (Buch et al, 2014). …”

Section: Introductionmentioning

confidence: 99%

“…Related to this issue, several authors have argued that since FDI decisions involve higher fixed costs than exports do, financial constraints are likely to constitute a key issue in FDI (Alfaro et al, 2004;Buch et al, 2014). In fact, since the sudden halt in FDI flows in the aftermath of the Great Recession, research focusing on the effect of financial frictions in multinational investment has emerged.…”

mentioning

confidence: 99%

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Homeward bound FDI: Are migrants a bridge over troubled finance?

2016

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Migrants can lower cross-border investment barriers, help investors by providing information about their homeland and reduce transaction costs by sharing expertise on regulations, customs and procedures. In addition to generating these well-known networking effects, migrants can also provide valuable information about local finance, thereby easing the credit constraints foreign investors faced during the 2007 financial crisis. This paper sheds new light on the underlying mechanisms through which migration may affect foreign investment in the migrant's homeland by distinguishing between the effects on FDI's intensive and extensive margins. Gravity estimates for 140 countries for the period 2003-2012 suggest that migrants exert a positive effect on bilateral FDI. However, financial constraints moderate this effect, primarily through the extensive margin. Additionally, quantile regression reveals that the interaction between migration and credit constraints is significant only for the lower levels of FDI. Our findings contribute to a better understanding of the interplay among migration, financial constraints and FDI.

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“…Buch et al (2014) reported similar results. Financial constraints have a greater effect on larger and/or more productive firms that are more likely to engage in FDI decisions.…”

Section: Introductionsupporting

confidence: 63%

Section: Introductionmentioning

confidence: 98%

Section: Introductionmentioning

confidence: 99%

mentioning

confidence: 99%

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Homeward bound FDI: Are migrants a bridge over troubled finance?

2016

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“…Gibson (1995) shows that bank health affects investment: investment is 30% lower for firms that have one of the lowestrated banks as their main bank. 3 Another related paper is by Buch et al (2014) who model the effect of credit constraints on FDI and, conditional on FDI, on the size of overseas operations. Using microdata on German FDI they find that a larger cash flow raises the propensity to invest abroad and to have more overseas affiliates.…”

Section: Introductionmentioning

confidence: 99%

Financial frictions and foreign direct investment: Evidence from Japanese microdata

Raff

Ryan

Stähler

2018

Journal of International Economics

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. on average from their peak in 1990 to the sample mean reduces the predicted number of investments by 17%. Reducing banks' market-to-book ratios by an average 61% from their high in 1986 to the sample mean lowers predicted investment counts by 21%. Terms of use: Documents in EconStor may

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Petrol prices and obesity

2022

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Obesity is a global public health issue that imposes significant social and economic costs on society. Often described as a public health emergency (Ayton & Ibrahim, 2019;Chan, 2013;James, 2018), worldwide over 1.9 billion adults are overweight or obese, which translates to approximately 40% of the world's adult population (WHO, 2020). In some developed countries, up to 80% of adults and 30% of children are overweight or obese (Finucane et al., 2011;Skinner et al., 2018). The high prevalence of obesity is particularly alarming, given that obesity has been linked with increased risk of myriad health conditions, including heart disease, diabetes, hypertension and stroke, among others (Casey et al., 2008). Understanding the factors that influence obesity has, thus, been the focus of a significant body of research. While biological factors contribute to the prevalence of obesity, emphasis is increasingly being placed on understanding the role that socioeconomic factors and the built environment play in influencing people's weight. To this point, research has mainly focused on the role of eating habits, physical

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Financial constraints and foreign direct investment: firm-level evidence

Cited by 71 publications

References 29 publications

Homeward bound FDI: Are migrants a bridge over troubled finance?

Homeward bound FDI: Are migrants a bridge over troubled finance?

Financial frictions and foreign direct investment: Evidence from Japanese microdata

Petrol prices and obesity

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