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Banking across borders has risen substantially over the past two decades. Yet there is significant heterogeneity in the international and global activities of banks across countries. This paper develops and tests a theoretical model that explains this variation from an international trade theory...
Persistent link: https://www.econbiz.de/10009707604
bank internationalization. Second, only a few non-financial firms engage in international trade, but many banks hold …
Persistent link: https://www.econbiz.de/10003923511
We examine both theoretically and empirically how migration affects cultural change in home and host countries. Our theoretical model integrates various compositional and cultural transmission mechanisms of migration-based cultural change for which it delivers distinctive testable predictions on...
Persistent link: https://www.econbiz.de/10012270567
We develop a heterogeneous-firms model with trade in goods, labor mobility and credit constraints due to moral hazard. Mitigating financial frictions reduces the incentive of high-skilled workers to migrate to one region such that an unequal distribution of industrial activity becomes less...
Persistent link: https://www.econbiz.de/10009690748
In this paper, we traced the survival status of 94,401 small businesses in 17 European emerging markets from 2007–2017 and empirically examined the determinants of their survival, focusing on institutional quality and financial development. We found that institutional quality and the level of...
Persistent link: https://www.econbiz.de/10012304241
We build a heterogeneous-firms model with firm-specific wages and credit frictions to study the role of financial development for inequality in the global economy. If there are many small firms, better access to external funds reduces wage inequality and unemployment. In contrast, if there are...
Persistent link: https://www.econbiz.de/10011434439
-economic attitudes in four European countries (France, Germany, Spain, and the United Kingdom). We conducted large-scale surveys while … different categories of attitudes: i) economic perceptions (economic insecurity and views on globalization); ii) political … insecurity, loneliness, and acceptance of authoritarianism while decreasing support for globalization. On the bright side, there …
Persistent link: https://www.econbiz.de/10012418542
What insights can be gained from bringing the theory of the firm to the global economy? I discuss several new features of the world economy that can be explained by incorporating the theory of the firm into the theory of international trade. Among the new features I discuss are the move to...
Persistent link: https://www.econbiz.de/10010212368
In this paper, we outline material and capital linkages across sectors to quantify the role of the German production network in amplifying sectoral dynamics on aggregate trend gross domestic product growth. This allows us to study the impact of sectoral labor input and total factor productivity...
Persistent link: https://www.econbiz.de/10014528208
We reassess the driving forces behind the recent decline of corporate tax rates in Europe. Using data for up to 32 …
Persistent link: https://www.econbiz.de/10003807847