The effect of the great recession on foreign direct investment: global empirical evidence with a gravity approach

Gil‐Pareja, Salvador; Vivero, Rafael-Llorca; Paniagua, Jordi

doi:10.1080/13504851.2013.802082

Cited by 27 publications

(21 citation statements)

References 10 publications

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“…Therefore, we explore now whether financial frictions, which are likely to 16 For empirical evidence related to the global effect of BC refer to Gil-Pareja et al (2013).…”

Section: Resultsmentioning

confidence: 99%

“…2015; Kroszner et al, 2007;Gil-Pareja et al, 2013) have used banking crises as an exogenous negative shock to the ability of the traditional financial system to provide credit.…”

Section: Data and Empirical Strategy 41 Datamentioning

confidence: 99%

“…According to the empirical evidence, simultaneous banking crises decrease FDI (Gil-Pareja et al, 2013). We use the setup proposed by Antràs and Foley (2015) and define the sales of a liquidity constrained affiliate:…”

Section: Migration and Financial Constraintsmentioning

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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“…Therefore, we explore now whether financial frictions, which are likely to 16 For empirical evidence related to the global effect of BC refer to Gil-Pareja et al (2013).…”

Section: Resultsmentioning

confidence: 99%

“…2015; Kroszner et al, 2007;Gil-Pareja et al, 2013) have used banking crises as an exogenous negative shock to the ability of the traditional financial system to provide credit.…”

Section: Data and Empirical Strategy 41 Datamentioning

confidence: 99%

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

2016

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“…We follow similar studies [37,38] and substitute the right-hand side variable for the number of foreign investments between country pairs. The estimation of the extensive margin reduces an over aggregation bias of capital flows in the estimation of the gravity equation Hillberry [39].…”

Section: Since Anderson and Van Wincoop's [2003] Seminal Solution To mentioning

confidence: 99%

“…Hence, to ensure that we are not capturing any spurious effects, we follow the procedure described in Gil-Pareja et al [38]. For a detailed description of the variables, countries and descriptive statistics, see Paniagua and Sapena [49,37].…”

Section: Datamentioning

confidence: 99%

Are Energy Market Integrations a Green Light for FDI?

2015

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Within the IEB framework, the Chair of Energy Sustainability promotes research into the production, supply and use of the energy needed to maintain social welfare and development, placing special emphasis on economic, environmental and social aspects. There are three main research areas of interest within the program: energy sustainability, competition and consumers, and energy firms. The energy sustainability research area covers topics as energy efficiency, CO2 capture and storage, R+D in energy, green certificate markets, smart grids and meters, green energy and biofuels. The competition and consumers area is oriented to research on wholesale markets, retail markets, regulation, competition and consumers. The research area on energy firms is devoted to the analysis of business strategies, social and corporative responsibility, and industrial organization. Disseminating research outputs to a broad audience is an important objective of the program, whose results must be relevant both at national and international level.The Chair of Energy Sustainability of the University of Barcelona-IEB is funded by the following enterprises ACS, CEPSA, CLH, Enagas, Endesa, FCC Energia, HC Energia, Gas Natural Fenosa, and Repsol) through FUNSEAM (Foundation for Energy and Environmental Sustainability). The IEB working papers represent ongoing research that is circulated to encourage discussion and has not undergone a peer review process. Any opinions expressed here are those of the author(s) and not those of IEB. Documents de Treball de l'IEB 2015/18 ARE ENERGY MARKET INTEGRATIONS A GREEN LIGHT FOR FDI?María Teresa Costa-Campi, Jordi Paniagua, Elisa Trujillo-Baute ABSTRACT: This paper studies the effect of energy market integration (EMI) on foreign direct investment (FDI). EMIs diminish energy uncertainty and price volatility in the host country and affect FDI through two channels: first, by harmonizing energy prices and, second, by reducing price dispersion. FDI may, as a result, increase both within and outside the EMI area, through energy stability mechanisms and price mechanisms, respectively. An empirical application on a global dataset including bilateral FDI data, during 2003-2012, using the gravity equation, shows that the integration of Portugal and Spain's electricity market in 2007 increased the amount of FDI's participants. Additionally, a positive increase in FDI from neighboring countries (in this instance, France), albeit lower in magnitude, is observed.JEL Codes: F20, F21, F23, Q40, Q43

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The Effect of Systemic Banking Crises on Entrepreneurship

Paniagua

Sapena

2014

New Challenges in Entrepreneurship and Finance

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The effect of the great recession on foreign direct investment: global empirical evidence with a gravity approach

Cited by 27 publications

References 10 publications

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

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

Are Energy Market Integrations a Green Light for FDI?

The Effect of Systemic Banking Crises on Entrepreneurship

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