This paper demonstrates how regional trade agreements (RTAs) can lead to both foreign direct investment creation and diversion effects. These two effects, in return, impact the enogenous formation of RTAs. The investment creation effect results from foreign forms' ability to serve a larger...

Thirty-four countries in North, Central and South America and the Caribbean would make up the Free Trade Area of the Americas (FTAA) if negotiations currently under way are successful in establishing this new trading bloc. While the FTAA would bring a number of benefits to its members, the...

Based on a new database of State-Owned Enterprise (SOE) financial statements, we find that SOEs in Bosnia and Herzegovina are mostly in poor financial shape. We estimate the overall size and composition of the SOE sector, and identify individual companies that affect fiscal and macroeconomic...

Based on a new database of State-Owned Enterprise (SOE) financial statements, we find that SOEs in Bosnia and Herzegovina are mostly in poor financial shape. We estimate the overall size and composition of the SOE sector, and identify individual companies that affect fiscal and macroeconomic...

Over the past decade, rising oil prices have translated into high levels of public investment in most MENA and CCA oil exporters. This has prompted questions about the efficiency of public investment in generating growth and closing infrastructure gaps, as well as concerns about fiscal...

Over the past decade, rising oil prices have translated into high levels of public investment in most MENA and CCA oil exporters. This has prompted questions about the efficiency of public investment in generating growth and closing infrastructure gaps, as well as concerns about fiscal...

My dissertation addresses topics of international finance. The first chapter develops a theoretical framework to analyze the composition of foreign investment during liquidity crises. The second chapter examines the role of adverse selection and liquidity in the breakdown if trade during crisis....

This paper studies the interaction between adverse selection, liquidity risk and beliefs about systemic risk in determining market liquidity, asset prices and welfare. Even a small amount of adverse selection in the asset market can lead to fire-sale pricing and possibly to a market breakdown if...

We survey several key mechanisms that explain the composition of international capital flows: foreign direct investment, foreign portfolio investment and debt flows (bank loans and bonds). In particular, we focus on the following market frictions: asymmetric information in capital markets and...