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We study how non-financial multinational companies propagate economic declines from their subsidiaries located in countries experiencing an economic downturn to subsidiaries in countries not experiencing one. We find that investment is 18% lower in subsidiaries of these parents relative to the...
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Most empirical research examines how the institutional environment of corruption shapes the behavior of MNCs. In this … environment of corruption over time. We propose three avenues through which the MNC may have an impact on its host institutions … FDI and corruption for a large sample of countries over the last 30 years, the empirical results are consistent with our …
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