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This paper empirically examines the impacts of exchange rate volatility on the location choice by Japanese …. We found that high exchange rate volatility discourages the establishment of an affiliate by MNCs. Moreover, the high … exchange rate volatility causes the shift from inter-firm to intra-firm transactions. These findings imply the importance of …
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This study incorporates international firm mobility into a new open economy macroeconomic model to analyze the question of how allowing for the international relocation of firms affects the impact of government spending shock on consumption and exchange rate. The study shows that the government...
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Real imports in China have decelerated significantly over the last two years to below 4 percent (yoy) from double-digit growth in previous years. Weaker investment, partly due to progress in rebalancing from investment to consumption, has been the main factor accounting for about 40-50 percent...
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