Free Trade Agreements (FTA) attract significant interest, but after these treaties are signed not all exporters use them. We provide a model of heterogeneous utilization, also developing a novel method to estimate treaty-utilization costs. We later apply the model to estimate the evolution...

This paper explores how affiliates of multinational corporations save liquidity when facing a transitory cash-flow shock. For this a panel is first built of non-publicly traded copper mines in South America between 2001 and 2012, most of them set up as Foreign Direct Investment (FDI). This...