Credit Conditions and Foreign Direct Investment During the Global Financial Crisis

• Tác giả: Rodolphe Desbordes
• Ngôn ngữ: eng
• Ký hiệu phân loại: 332.15 International banks
• Thông tin xuất bản: World Bank Group, Washington, DC, 2014
• Bộ sưu tập: Tài liệu truy cập mở
• ID: 327664
• Chủ đề: 1. ACCESS TO CAPITAL; 2. ACCESS TO CREDIT; 3. ACCESS TO EXTERNAL FINANCE; 4. ACCESSIBILITY; 5. ADVERSE SELECTION

Tóm tắt

This paper investigates the effect that tight credit conditions had on outward foreign direct investment flows during the 2008-2010 global financial crisis. A difference-in-differences approach is used to isolate a "credit channel" impact of the global financial crisis on foreign direct investment. The global financial crisis had a stronger negative impact on the relative volume of outward foreign direct investment in financially vulnerable sectors in more financially developed countries, especially if these countries also experienced a banking crisis. These results suggest that lack of access to external finance can partly explain the drop in foreign direct investment during the global financial crisis.