Recent literature on multinational firms has stressed the importance of low productivity as a barrier to the cross-border expansion of firms. But firms may also need external finance to shoulder the costs of entering foreign markets. We develop a model of multinational firms facing real and...

Exporters and multinationals are larger and more productive than their domestic counterparts. In addition to productivity, financial constraints and labor market constraints might constitute barriers to entry into foreign markets. We present new empirical evidence on the extensive and intensive...

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...

This paper explores the impact of financial constraints on the internationalization strategies of firms. It contributes to the literature by focusing on three aspects: First, the paper studies the impact of financial constraints on exporting relative to FDI. Consistent with theory, the empirical...

Recent literature on multinational firms has stressed the importance of low productivity as a barrier to the cross-border expansion of firms. But firms may also need external finance to shoulder the costs of entering foreign markets. We develop a model of multinational firms facing real and...

Recent literature on multinational firms has stressed the importance of low productivity as a barrier to the cross-border expansion of firms. But firms may also need external finance to shoulder the costs of entering foreign markets. We develop a model of multinational firms facing real and...

In der zweiten Hälfte der 90er Jahre sind die Aufwendungen deutscher multinationaler Unternehmen für Forschung und Entwicklung (FuE) im Ausland stärker gestiegen als im Inland. In gleichem Maße steigerten ausländische Unternehmen ihre FuE-Aufwendungen in Deutschland, so dass die Bilanz...

Die Analyse der Patentanmeldungen deutscher Unternehmen am Europäischen Patentamt zeigt: Die Unternehmen lenken ihre Forschungsaktivitäten im Ausland vor allem in die Hochtechnologiebereiche, in denen sie seit langem besonders intensiv forschen. Dies sind die Elektrotechnik, Steuerungstechnik,...

Trade in intermediate goods as one possible link between rising trade and foreign direct investment is examined. To explain growing intermediate goods trade, three hypotheses are brought forward: outsourcing, global sourcing and the increasing importance of MNE networks. These hypotheses are...