Foreign direct investment and external financing conditions : evidence from normal and crisis times

Desbordes, Rodolphe and Wei, Shang-Jin (2017) Foreign direct investment and external financing conditions : evidence from normal and crisis times. Scandinavian Journal of Economics. pp. 1129-1166. ISSN 0347-0520 (https://doi.org/10.1111/sjoe.12192)

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Abstract

This paper investigates the effects that external financing conditions in source and destination countries have on foreign direct investment (FDI) in normal and crisis times, using a difference-in- differences approach. We find that source and destination countries’ financial development have a strong positive impact on the relative volume of FDI in financially vulnerable sectors in normal times. On the other hand, during the 2008-2010 global financial crisis, the relative volume of FDI in financially vulnerable sectors fell relatively more in financially developed source and destination countries, most notably if these countries experienced a credit crisis.

ORCID iDs

Desbordes, Rodolphe ORCID logoORCID: https://orcid.org/0000-0001-8923-5401 and Wei, Shang-Jin;
  • Item type:Article
    ID code:56160
    Dates:
    Date
    Event
    October 2017
    Published
    13 June 2016
    Published Online
    9 December 2015
    Accepted
    Notes:This is the peer reviewed version of the following article: Desbordes, R., & Wei, S-J. (2015). Foreign direct investment and external financing conditions: evidence from normal and crisis times. Scandinavian Journal of Economics. DOI: 10.1111/sjoe.12192, which has been published in final form at https://doi.org/10.1111/sjoe.12192. This article may be used for non-commercial purposes in accordance with Wiley Terms and Conditions for Self-Archiving.
    Subjects:Social Sciences > Commerce
    Department:Strathclyde Business School > Economics
    Depositing user: Pure Administrator
    Date deposited:14 Apr 2016 15:31
    Last modified:11 Nov 2024 11:23
    Related URLs:
    URI:https://strathprints.strath.ac.uk/id/eprint/56160
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