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 …

productivity gains for domestic firms. The size of FDI spillovers is economically important, accounting for about 14% of … productivity growth in U.S. firms between 1987 and 1996. In addition, there is some evidence for imports-related spillovers, but it …

We quantify the effect of foreign investment on productivity of acquired firms using a new firm-level database that … score matching; and to control for selection on unobserved fundamentals, we include country- sector trends. The productivity …

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 …

The empirical literature finds mixed evidence on the existence of positive productivity externalities in the host … relative productivity of the foreign firm leads to higher additional growth in financially developed economies compared to …

This paper offers empirical evidence that real exchange rate volatility can have a significant impact on long-term rate … of productivity growth, but the effect depends critically on a country's level of financial development. For countries … with relatively low levels of financial development, exchange rate volatility generally reduces growth, whereas for …

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 …

We examine how credit constraints affect the cyclical behavior of productivity-enhancing investment and thereby … volatility and growth. We first develop a simple growth model where firms engage in two types of investment: a short-term one and … a long-term productivity-enhancing one. Because it takes longer to complete, long-term investment has a relatively less …

Economic theory has identified a number of channels through which openness to international financial flows could raise … productivity growth. However, while there is a vast empirical literature analyzing the impact of financial openness on output … growth, far less attention has been paid to its effects on productivity growth. We provide a comprehensive analysis of the …