estimator. Results indicate that the trade channel is not as important as cross-section models suggest but that FDI may have the … Monetary Union as well as many other countries strives to attract foreign direct investment (FDI) because of its reputation as … being highly beneficial for the host economy. But stronger FDI linkages may also have a significant impact on business …

changes in the terms of trade. The financial frictions and shocks can be calibrated to match the reduced equity home bias …

with stronger FDI relations during 1995–2010, but that they are mainly associated with stronger trade linkages before 1995 … trade links are not. Our findings suggest that FDI has become a separate channel through which economies may affect each …This paper investigates the relationship between foreign direct investment (FDI) and business cycle synchronization in …

period 1983-2009. We experiment with inter-country links that distinguish bilateral trade, portfolio investment, foreign … bilateral trade and inward foreign direct investment or outward banking claim exposures in a GVAR fits the data better than … using trade weights only. We use sign restrictions on the short-run impulse responses to financial shocks that have the …

-country international real business cycle model with international trade that offers several potential explanations: shocks to TFP, demand …, leisure, investment, economic sectors, and bilateral trade. These shocks fully account for movements in gross domestic product … and trade shares, completely describing the data during 1992-2014. Calibrating the model to a panel of developed (G7 …

I introduce commodities and countries' different commodity trade structures into an otherwise standard two …