aggregate productivity using a dynamic general equilibrium model. Data shows that post the 2008 crisis, firms changed their … sheet portfolio composition of productive assets. This reallocation of assets leads to an increase in measured productivity …

presence of stochastic productivity taking into account differences in flexibility of both investments. Isolated FPI and FDI …&d-investment and consequently firm productivity increase faster than with isolated international investment. Depending on the success …-probability and the correlation between the various investment possibilities, even small firms (low productivity) invest in FDI …