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 …Previous empirical work on the link between domestic and foreign investment provides mixed results which partly depend …

Firm-level data, aggregate investment, dynamic factor model, SFAVAR, business cycle, Banking stress, firms' financing … conditions, government bond yields, Aggregate investment, firm investment, investment sensitivity to cash flow …

the period 1989-2002. We find that German outward FDI increases in response to positive cyclical developments abroad and …

Economic theory provides two main explanations why changes in exchange rates can affect foreign direct investment (FDI …). According to a first explanation, FDI reacts to exchange rate changes if there are information frictions on capital markets and … if the investment by firms depends on their net worth (capital market friction hypothesis). According to a second …