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Troubled banks, impaired foreign direct investment: the role of relative access to credit

Klein, Michael W.; Rosengren, Eric; Peek, Joe - Federal Reserve Bank of Boston - 2000

The relative wealth hypothesis of Froot and Stein (1991), motivated by the aggregate correlation between real exchange rates and foreign direct investment (FDI) observed in the 1980s, cannot explain one of the major shifts in FDI in the 1990s: the continued decline in Japanese FDI during a...

Persistent link: https://www.econbiz.de/10005379763

The real exchange rate and foreign direct investment in the United States: relative wealth vs. relative wage effects

Klein, Michael W.; Rosengren, Eric S. - Federal Reserve Bank of Boston - 1992

There has been a significant correlation between inward foreign direct investment in the United States and the U.S. real exchange rate since the 1970s. Two alternative reasons for this relationship are that the real exchange rate affects the relative cost of production and that the real exchange...

Persistent link: https://www.econbiz.de/10005379815

Deposit insurance, capital requirements, and financial stability

Kopcke, Richard W. - Federal Reserve Bank of Boston - 2000

returns depend on two risk premiums that intermediaries incur on their liabilities: an explicit premium that reflects the … public's view of the risks inherent in intermediaries' assets and an implicit premium that reflects intermediaries' risk of … risk premiums on assets and stabilizing equilibrium returns when the public's assessment of yields changes. Because fair …

Persistent link: https://www.econbiz.de/10005379818

Core competencies and the structure of foreign direct investment

Díez, Federico J.; Spearot, Alan C. - Federal Reserve Bank of Boston - 2011

We develop a matching model of foreign direct investment to study how multinational firms choose between greenfield investment, acquisitions, and joint ventures. For all entry modes, firms must invest in a continuum of tasks to bring a product to market. Each firm possesses a core competency in...

Persistent link: https://www.econbiz.de/10009366948

Borrowing costs and the demand for equity over the life cycle

Davis, Steven J.; Kubler, Felix; Willen, Paul - Federal Reserve Bank of Boston - 2005

ingredient is a wedge between the cost of borrowing and the risk-free investment return. Borrowing can either raise or lower … risk-free rate cannot simultaneously fit empirical evidence on borrowing and equity holdings. …

Persistent link: https://www.econbiz.de/10005713288

Core competencies, matching, and the structure of foreign direct investment: an update

Díez, Federico J.; Spearot, Alan C. - Federal Reserve Bank of Boston - 2012

We develop a matching model of foreign direct investment to study how multinational firms choose between greenfield investment, acquisitions, and joint ownership. Firms must invest in a continuum of tasks to bring a product to market. Each firm possesses a core competency in the task space, but...

Persistent link: https://www.econbiz.de/10011027187