Avdiu, Kujtim; Güntner, Jochen; Mayr, Karin; Segalla, … - 2026
We describe a novel mechanism via which multinational enterprises (MNEs) can serve to propagate productivity and credit supply shocks across borders. We augment the costly-state-verification model of Bernanke et al. [1999] with the internal capital market constraint of an MNE to analyze the...