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http://hdl.handle.net/10419/28391
  

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dc.contributor.authorBuch, Claudia M.en_US
dc.contributor.authorKesternich, Irisen_US
dc.contributor.authorLipponer, Alexanderen_US
dc.contributor.authorSchnitzer, Monikaen_US
dc.date.accessioned2009-10-13en_US
dc.date.accessioned2009-10-26T14:25:39Z-
dc.date.available2009-10-26T14:25:39Z-
dc.date.issued2009en_US
dc.identifier.isbn978-3-86558-567-7en_US
dc.identifier.urihttp://hdl.handle.net/10419/28391-
dc.description.abstractRecent 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 financial barriers to foreign direct investment (FDI), and we analyze their impact on the FDI decision (the extensive margin) and foreign affiliate sales (the intensive margin). We provide empirical evidence based on a detailed dataset of German multinationals which contains information on parent-level and affiliate-level financial constraints as well as about the location the foreign affiliates. We find that financial factors constrain firms’ foreign investment decisions, an effect felt in particular by large firms. Financial constraints at the parent level matter for the extensive, but less so for the intensive margin. For the intensive margin, financial constraints at the affiliate level are relatively more important.en_US
dc.language.isoengen_US
dc.publisherDt. Bundesbank Frankfurt, M.en_US
dc.relation.ispartofseriesDiscussion Paper Series 1: Economic Studies 2009,29en_US
dc.subject.jelF2en_US
dc.subject.jelG2en_US
dc.subject.ddc330en_US
dc.subject.keywordMultinational firmsen_US
dc.subject.keywordheterogeneityen_US
dc.subject.keywordproductivityen_US
dc.subject.keywordfinancial constraintsen_US
dc.titleFinancial constraints and the margins of FDIen_US
dc.typeWorking Paperen_US
dc.identifier.ppn610385089en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungen-
dc.identifier.repecRePEc:zbw:bubdp1:200929-
Appears in Collections:Discussion Paper Series 1: Economic Studies, Deutsche Bundesbank

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