markets on the cost of macroeconomic volatility there. We find that macroeconomic volatility has a potentially large impact on … even for risk neutral multinationals, as their profit function is non-linear due to price and productivity effects. For … industries with costly capacity, the multinationals would tend to invest in the more stable emerging markets. Higher volatility …

theoretically that volatility in fundamental variables such as the nominal interest rate that drive exchange rate volatility can … investment on exchange rate volatility. It is the first paper to provide empirical evidence that interest rate volatility may …

model in which technical advances are embodied in new capital, investment will translate directly into productivity gains … growth than the sum of the contributions of parent and affiliate employment, and materials; (2) productivity has boomed since … 1992, due to productivity growth in MNCs with Canadian affiliates; (3) the investment elasticity of productivity growth is …

-open-economy real-business-cycle model driven by nonstationary productivity shocks. We find that the RBC model does a poor job at … business cycles in emerging markets and, importantly, assigns a negligible role to nonstationary productivity shocks …

made by firms located in emerging markets. Neoclassical theory predicts that, on net, capital should flow from countries …

choices matter for output volatility and the medium-term level of inflation. Greater monetary independence is associated with … lower output volatility while greater exchange rate stability implies greater output volatility, which can be mitigated if a … inflation rate. We find that trilemma policy configurations and external finances affect output volatility through the …

This paper shows how changes in the volatility of the real interest rate at which small open emerging economies borrow … motivate our investigation, we document the strong evidence of time-varying volatility in the real interest rates faced by a … sample of four emerging small open economies: Argentina, Ecuador, Venezuela, and Brazil. We postulate a stochastic volatility …

levels. In emerging countries, trade liberalization appears to spur productivity and innovation. In developed countries …

This paper examines the impact of the operations of foreign-owned multinational firms on the productivity growth of …-owned firms affects the productivity of local firms in that sector and whether there is any evidence of convergence between that … industry's productivity level and that of the United States. The main results can be summarized as follows: First, productivity …