-2000 sample, the initial response of investment to a productivity shock with responses in the top quartile is 60% higher than the … shock. Conversely, a slowdown after a boom can lead to a long lasting investment slump, which is unresponsive to policy … smoothing in the investment response to aggregate shocks. The remaining 40% is explained by general equilibrium forces. The …

of foreign direct investment: only the more productive firms choose to serve the foreign markets, and the most productive …

direct investment ; productivity ; heterogeneous firms ; stochastic dominance … or foreign direct investment: only the more productive firms choose to serve the foreign markets, and the most productive … first order stochastic dominance it is shown that, in line with this hypothesis, the productivity distribution of foreign …