Suchergebnisse

This study examines the effects of identified industry tariff shocks on firms' outward foreign direct investment (FDI) into their destinations. Using rich Korean firm‐level data for 2010–18, the study decomposes FDI outflows from multinational enterprises (MNEs) into the number of subsidiaries (extensive margin) and average FDI for individual subsidiaries (intensive margin) in the destination. New evidence of tariff‐driven FDI reveals that the tariff decrease shocks (TDS) (significant tariff decreases) lower the number of existing subsidiaries rather than the average FDI volume for the existing subsidiaries. In addition, more productive firms investing in developing countries lower the number of existing subsidiaries to a greater extent in response to TDS, implying that productive MNEs reallocate resources into selective core subsidiaries when a significant tariff decrease occurs.

Using data on 70 emerging countries for 1990-2011, we re-examine the validity of both traditional and recently proposed determinants of international reserves. The dynamic panel model considers panel unit root, endogeneity, and country heterogeneity and reveals that not only traditional determinants but also new financial variables - M2/GDP and foreign capital inflows through over-the-counter markets - have significant effects on reserves hoarding. More importantly, out-of-sample forecasts show that the dynamic model yields the best goodness-of-fit, and its predicted values successfully account for the recent patterns in reserve accumulations.

We examine the effects of inward FDI on the distribution of plant total factor productivity. Using Korean manufacturing plant‐level data covering 1990–2007, we find that industry FDI had heterogeneous effects on plant productivity and its distribution in terms of industry characteristics, such as industry concentration index and capital intensity. While sectoral FDI drove up productivity more for plants in industries with low concentration, it had negative effects on productivity especially for the least productive plants in industries with high concentration and high capital intensity. Our results also reveal that the positive effect of FDI was greater for exporters than for non‐exporters.