Can a temporary negative shock generate long-lasting effects on economic activities? To show causal evidence, we utilize data from Japanese multinational corporations (MNCs) and explore the economic impact of the unexpected escalation of an island dispute between China and Japan in 2012. Our...

Government-controlled investors, including state-owned enterprises and sovereign wealth funds, have greatly expanded their international activities in recent years. This paper describes the existing policy landscape of international investments by government-controlled investors under both...

Global flows of foreign direct investment (FDI) have slowed down in recent years, which particularly affected developed countries, including those in the European Un- ion (EU). A general decrease in capital circulation in the form of FDI between the EU and the rest of the world has been...