type="main" xml:id="twec12167-abs-0001" <title type="main">Abstract</title> <p>Trade credits are an important financing tool for internationally active firms. This is surprising, as trade credits are generally more expensive than bank credits and thus a costly substitute for bank financing. In this paper, we investigate the...</p>

Moderne Evaluationsmethoden auf der Basis ökonometrischer Verfahren und randomisierter Feldexperimente machen es für immer mehr Politikbereiche möglich, die Wirksamkeit wirtschaftspolitischer Maßnahmen zu überprüfen. Gleichwohl sind diese Methoden in der deutschen Evaluationspraxis nicht...

This paper examines micro-level channels through which financial development can affect such macroeconomic outcomes as level of income. Specifically, we investigate theoretically and empirically how financial constraints affect a firm’s innovation activities. Theoretical predictions are tested...

In this paper we analyze the conditions under which a foreign direct investment (FDI) involves a net capital flow across countries. For this purpose, we investigate how multinational firms finance their foreign affiliates, globally or locally. We develop a contract theoretical model in which the...

The internationalisation of research and development (R\&D) is continuously increasing and will also take on steadily growing importance in the future. Firms are very mobile when deciding upon their R\&D locations and choose locations where they can profit from local knowledge. In the light of...

The paper investigates how barter can be used to finance imports and restore the creditworthiness of highly indebted countries when reputation as an enforcement mechanism for credit repayment does not work. The authors argue that payments in goods can be used to collateralize a trade credit and...

The paper compares the two standard forms of international investment in developing countries, debt and foreign direct investment (FDI), from a finance perspective. The sovereign risks associated with debt finance are shown to be generally less severe than the ones that come with FDI. FDI is...

We develop a model of a multinational firm serving a foreign market that needs to decide about the location of production and the optimal ownership structure. We study how the location decision and the ownership choice interact, how these decisions are affected by (cultural) distance and how...