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 …

relative to FDI. Consistent with theory, the empirical results confirm that the impact of financial constraints is stronger for … FDI than for exporting. Second, the paper analyzes the extensive and the intensive margins and finds that financial …