Konferenzbeitrag
Dynamic Effects of Foreign Direct Investment When Credit Markets are Imperfect
This paper argues that foreign direct investment in economies with credit market imperfections may increase their vulnerability to capital flow shocks. Due to better access to financial markets foreign firms can use other wage contracts than domestic ones. This alters the domestic wage composition and the subsequent wealth distribution. When credit markets are imperfect, the wealth distribution typically determines an economy's growth potential in autarky; hence, high exposure to foreign direct investment may significantly impede the capability to recover from sudden withdrawals of foreign capital. This is substantiated by empirical evidence on durations of output recovery after systemic sudden stops.
- Sprache
-
Englisch
- Erschienen in
-
Series: Proceedings of the German Development Economics Conference, Hannover 2010 ; No. 5
Klassifikation
Wirtschaft
Economic Growth of Open Economies
Multinational Firms; International Business
Economic Development: Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
Economic Growth of Open Economies
Multinational Firms; International Business
Economic Development: Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
Thema
Credit market imperfections
foreign direct investment
growth
occupational choice
sudden stops
foreign direct investment
growth
occupational choice
sudden stops
Ereignis
Geistige Schöpfung
(wer)
Gall, Thomas
Schiffbauer, Marc
Kubny, Julia
Schiffbauer, Marc
Kubny, Julia
Ereignis
Veröffentlichung
(wer)
Verein für Socialpolitik, Ausschuss für Entwicklungsländer
(wo)
Göttingen
(wann)
2010
- Handle
- Letzte Aktualisierung
-
12.07.2024, 13:23 MESZ
Objekttyp
- Konferenzbeitrag
Beteiligte
- Gall, Thomas
- Schiffbauer, Marc
- Kubny, Julia
- Verein für Socialpolitik, Ausschuss für Entwicklungsländer
Entstanden
- 2010
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