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Financial Constraints and the Margins of FDI

Buch, Claudia M.; Kesternich, Iris; Lipponer, Alexander; … - C.E.P.R. Discussion Papers - 2009

Recent literature on multinational firms has stressed the importance of low productivity as a barrier to the cross …

Persistent link: https://www.econbiz.de/10008528519

Exports Versus FDI Revisited: Does Finance Matter?

Buch, Claudia M.; Kesternich, Iris; Lipponer, Alexander; … - C.E.P.R. Discussion Papers - 2010

The crisis on international financial markets that started in 2007 has shown the potential links between the financial sector and the real economy. Exports and foreign direct investment (FDI) have declined, presumably not only because of a lack of demand, but also because of restricted access of...

Persistent link: https://www.econbiz.de/10008468589

Credit, Wages and Bankruptcy Laws

Biais, Bruno; Mariotti, Thomas - C.E.P.R. Discussion Papers - 2003

We study the impact of different bankruptcy laws in general equilibrium, taking into account the interactions between the credit and labour markets, as well as wealth heterogeneity. Soft bankruptcy laws often preclude liquidation, to avoid ex-post inefficiencies. This worsens credit rationing,...

Persistent link: https://www.econbiz.de/10005498012

Innovation and Trade in the Presence of Credit Constraints

Foellmi, Reto; Legge, Stefan; Tiemann, Alexa - C.E.P.R. Discussion Papers - 2015

' productivity-enhancing activities, we provide novel evidence showing that financial constraints can impair the effect on R …

Persistent link: https://www.econbiz.de/10011165666

How Trade Credits Foster International Trade

Eck, Katharina; Engemann, Martina; Schnitzer, Monika - C.E.P.R. Discussion Papers - 2012

Internationally active firms rely intensively on trade credits even though they are considered particularly expensive. This phenomenon has been little explored so far. Our theoretical analysis shows that trade credits can alleviate financial constraints arising from asymmetric information...

Persistent link: https://www.econbiz.de/10011083260

Trade liberalization and credit constraints: Why opening up may fail to promote convergence

Peters, Katrin; Schnitzer, Monika - C.E.P.R. Discussion Papers - 2012

Recent evidence suggests that despite opening up a country for trade, the productivity gap between developed and … liberalization increases economic performance, that is average productivity and technology adoption, in both countries but that the … productivity gap widens. Simulations show that the welfare gap widens too. Opening up without sufficient access to external funding …

Persistent link: https://www.econbiz.de/10011084499

Financial Dependence and Innovation: The Case of Public versus Private Firms

Acharya, Viral V; Xu, Zhaoxia - C.E.P.R. Discussion Papers - 2014

This paper examines the relationship between innovation and firms' dependence on external capital by analyzing the innovation activities of privately-held and publicly-traded firms We find that public firms in external finance dependent industries generate patents of higher quantity, quality,...

Persistent link: https://www.econbiz.de/10011084508

Financial Constraints and Moral Hazard: The Case of Franchising

Fan, Ying; Kühn, Kai-Uwe; Lafontaine, Francine - C.E.P.R. Discussion Papers - 2013

Financial constraints are an important impediment to the growth of small businesses. We study theoretically and empirically how the financial constraints of agents affect their decisions to exert effort, and, hence the organizational decisions and growth of principals, in the context of...

Persistent link: https://www.econbiz.de/10011084668

The Dynamics of Financially Constrained Arbitrage

Gromb, Denis; Vayanos, Dimitri - C.E.P.R. Discussion Papers - 2015

We develop a model of financially constrained arbitrage, and use it to study the dynamics of arbitrage capital, liquidity, and asset prices. Arbitrageurs exploit price discrepancies between assets traded in segmented markets, and in doing so provide liquidity to investors. A collateral...

Persistent link: https://www.econbiz.de/10011184076

Do Measures of Financial Constraints Measure Financial Constraints?

Farre-Mensa, Joan; Ljungqvist, Alexander P. - C.E.P.R. Discussion Papers - 2015

Financial constraints are fundamental to empirical research in finance and economics. We propose two novel tests to evaluate how well measures of financial constraints actually capture constraints. We find that firms classified as constrained according to five popular measures do not in fact...

Persistent link: https://www.econbiz.de/10011145461