Exchange Rates and FDI: Goods versus Capital Market Frictions
Claudia M. Buch, J. Kleinert
World Economy,
forthcoming
Abstract
Changes in exchange rates affect countries through their impact on cross-border activities such as trade and foreign direct investment (FDI). With increasing activities of multinational firms, the FDI channel is likely to gain in importance. Economic theory provides two main explanations why changes in exchange rates can affect FDI. According to the first explanation, FDI reacts to exchange rate changes if there are information frictions on capital markets and if investment depends on firms’ net worth (capital market friction hypothesis). According to the second explanation, FDI reacts to exchange rate changes if output and factor markets are segmented, and if firm-specific assets are important (goods market friction hypothesis). We provide a unified theoretical framework of these two explanations. We analyse the implications of the model empirically using a dataset based on detailed German firm-level data. We find greater support for the goods market than for the capital market friction hypothesis.
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Do Weak Supervisory Systems Encourage Bank Risk-taking?
Claudia M. Buch, G. DeLong
Journal of Financial Stability,
2008
Abstract
Weak bank supervision could give banks the ability to shift risk from themselves to supervisors. We use cross-border bank mergers as a natural experiment to test changes in risk and the impact of supervision. We examine cross-border bank mergers and find that the supervisory structures of the partners’ countries influence changes in post-merger total risk. An acquirer from a country with strong supervision lowers total risk after a cross-border merger. However, total risk increases when the target bank is located in a country with relatively strong supervision. This result is consistent with strong host regulators limiting the risky activities of their local banks. Foreign-owned competitors could then engage in the risky projects, especially if the foreign banks’ supervisors are not strong. An acquirer entering a country with strong supervision appears to shift risk back to its home country. The results suggest that bank supervisors can reduce total banking risk in their countries by being strong.
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Bridging the biotechnology gap: policy experiences from the Czech Republic, Estonia, Hungary and Slovenia.
Iciar Dominguez Lacasa
International Journal of Biotechnology Vol. 10 (4),
2008
Abstract
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A note on GMM-estimation of probit models with endogenous regressors
Joachim Wilde
Statistical Papers,
No. 3,
2008
Abstract
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Wie wirkt die wirtschaftliche Betätigung der Städte auf die gesamte Wirtschaftsleistung
Peter Haug
Neue Grenzen städtischer Wirtschaftstätigkeit: Ausweitung versus Abbau?,
2009
Abstract
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Von der politischen zur demographischen Transformation: Ostdeutschland am Scheideweg
Alexander Kubis, Lutz Schneider
Empirische und theoretische Analysen aktueller wirtschafts- und finanzpolitischer Fragestellungen,
2009
Abstract
Die Bevölkerungszusammensetzung in Ostdeutschland ändert sich seit dem politischen Transformationsprozess stark. Die ostdeutsche Entwicklung der letzten 20 Jahren ist, neben einem sich verändernden Fertilitäts- und Mortalitätsverhalten, auch durch den anhaltenden Netto-Migrationsverlust von über 1,9 Mio. Menschen getrieben. Vor diesem Hintergrund analysiert der Artikel die Risiken des demographischen Wandels auf das regionale Entwicklungspotenzial. Zukünftig verstärkt sich diese Entwicklung durch einen weiteren drastischen Rückgang der Geburtenzahlen. Kurzfristig sollte sich dies in einem Rückgang der Beschäftigung und einem Anstieg der Kapitalintensität /Produktivität äußern. Langfristig kann dies zu einem Fachkräftemangel führen. Letztendlich ist eine positive aber auch negative Wirkung demographischer Veränderungen im Hinblick auf das ostdeutsche Wachstumspotenziel denkbar.
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Peirce, Veblen, and the Introduction of Cumulative Causation into Economics Science
John B. Hall, O. Whybrow
Berger, S. (ed.), Foundations of Non-Equilibrium,
2009
Abstract
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How to Make a City Attractive for Knowledge-Intensive Firms? – The Formation and Stagnation of Media Industry in the Old Industrial Region of Halle (Germany)
Christoph Hornych, Martin T. W. Rosenfeld
The Regeneration of Image in Old Industrial Regions: Agents of Change and Changing Agents. Mönchengladbacher Schriften zur wirtschaftswissenschaftlichen Praxis, Bd. 22,
2009
Abstract
In many regions with development problems, which had – in the past – been the domain of traditional industries, policymakers are trying today to stimulate entrepreneurial activities in knowledge-intensive and creative industries. The question is whether this strategy could really be successful. This paper reports on a case-study for the region of Halle an der Saale, which is located in the state of Saxony-Anhalt (East Germany), where the strategy of policymakers has recently been the attempt to support firms from Media Industry (“MI”).
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Economic Impacts of GHG Emission Reductions: An Overview of Multiple Model Calculations
Walter Hyll,
Bosetti et al. (ed.): Modelling Sustainable Development: Transitions to a Sustainable Future,
2009
Abstract
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Deutsche Einheit und Globalisierung als Herausforderungen an die Soziale Marktwirtschaft
Ulrich Blum
60 Jahre Soziale Marktwirtschaft: Illusionen und Reinterpretationen einer ordnungspolitischen Integrationsformel,
2009
Abstract
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