Since World War II six risk-sharing institutions to stimulate foreign investment have been established by the U …

the pricing of default risk. Inalienability implies that it is not as advantageous to expropriate FDI relative to other … flows. These features combine to give a risk sharing advantage to FDI over other capital flows. This risk sharing advantage … and country risk ratings to measure financing constraints, I present new evidence linking FDI and financing constraints …

We develop a structural model of the global banking network and analyze its role in facilitating risk sharing and … explains variation in risk sharing and amplification across countries. Moreover, we show that cross‐border loan supply has … become less elastic over time, resulting in a decline in risk sharing. While shock amplification has also declined on average …