investment (FDI) cannot be gauged using firm-level data. Aggregated data, in turn, miss channels through which domestic and … investment. We theoretically show that the effects of FDI on the domestic capital stock depend on the structure of industries and … inter-sector linkage effects. We test the model using data on German FDI. Using panel cointegration methods, we find …

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 …