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Book/Printed Material Financial constraints and growth Multinational and local firm responses to currency crises

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Title

  • Financial constraints and growth Multinational and local firm responses to currency crises

Summary

  • "This paper studies the effects of financial constraints on firm growth by investigating if large depreciations differentially impact multinational affiliates and local firms in emerging markets. U.S. multinational affiliates increase sales, assets and investment significantly more than local firms during, and subsequent to, currency crises. The enhanced relative performance of multinationals is traced to their ability to use internal capital markets to capitalize on the competitiveness benefits of large depreciations. Investment specifications indicate that increases in leverage resulting from sharp depreciations constrain local firms from capitalizing on these investment opportunities, but do not constrain multinational affiliates. Multinational parents also infuse new capital in their affiliates after currency crises. These results indicate another role for foreign direct investment in emerging markets multinational affiliates expand economic activity during currency crises when local firms are most constrained"--National Bureau of Economic Research web site.

Names

  • Desai, Mihir A. (Mihir Arvind), 1968-
  • Foley, C. Fritz
  • National Bureau of Economic Research

Created / Published

  • Cambridge, MA : National Bureau of Economic Research, c2004.

Headings

  • -  Currency question--United States
  • -  International business enterprises--United States

Notes

  • -  Title from PDF file as viewed on 1/24/2005.
  • -  Includes bibliographical references.
  • -  Also available in print.
  • -  Mode of access: World Wide Web.
  • -  System requirements: Adobe Acrobat Reader.

Call Number/Physical Location

  • HB1

Digital Id

Library of Congress Control Number

  • 2005616264

Access Advisory

  • Unrestricted online access

Online Format

  • image
  • pdf

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Cite This Item

Citations are generated automatically from bibliographic data as a convenience, and may not be complete or accurate.

Chicago citation style:

Desai, Mihir A, C. Fritz Foley, and National Bureau Of Economic Research. Financial constraints and growth Multinational and local firm responses to currency crises. Cambridge, MA: National Bureau of Economic Research, 2004. Pdf. https://aj.sunback.homes/item/2005616264/.

APA citation style:

Desai, M. A., Foley, C. F. & National Bureau Of Economic Research. (2004) Financial constraints and growth Multinational and local firm responses to currency crises. Cambridge, MA: National Bureau of Economic Research. [Pdf] Retrieved from the Library of Congress, https://aj.sunback.homes/item/2005616264/.

MLA citation style:

Desai, Mihir A, C. Fritz Foley, and National Bureau Of Economic Research. Financial constraints and growth Multinational and local firm responses to currency crises. Cambridge, MA: National Bureau of Economic Research, 2004. Pdf. Retrieved from the Library of Congress, <aj.sunback.homes/item/2005616264/>.