Surviving the Global Financial Crisis : Foreign Ownership and Establishment Performance

This paper examines how different establishments performed during the recent global financial crisis, focusing on the role of foreign ownership. The paper investigates how foreign ownership affected establishments' responses to negative economic shocks, using a cross-country panel dataset with detailed information on operation, location and industry for more than 12 million establishments from 2005-2008. The evidence shows that multinational subsidiaries on average fared better than local counterfactuals with similar economic characteristics. Among multinational subsidiaries, establishments with stronger production and financial linkages with parent companies showed greater resilience. Finally, in contrast to the crisis period, the impact of foreign ownership and linkages on an establishment's performance was insignificant in non-crisis years.

Bibliographic Details

Main Authors:	Alfaro, Laura, Chen, Maggie Xiaoyang
Format:	Policy Research Working Paper biblioteca
Language:	English
Published:	2012-01-01
Subjects:	AFFILIATED ORGANIZATIONS, AMERICAN ECONOMIC ASSOCIATION, AMERICAN ECONOMIC REVIEW, ASSETS, BANK CREDIT, BANKING SYSTEM, BANKRUPTCY, BENCHMARK, BENCHMARK DATA, BUSINESS CYCLE, CAPITAL FLOWS, CAPITAL INTENSITY, CAPITAL MARKETS, COUNTRY DUMMIES, CREDIT RATINGS, DEBT, DEPENDENT, DEVELOPMENT ECONOMICS, DEVELOPMENT POLICY, DIRECT FOREIGN INVESTMENT, DOMESTIC DEMAND, ECONOMIC CRISES, ECONOMIC CRISIS, ECONOMIC DOWNTURN, ECONOMIC DOWNTURNS, ECONOMIC EXPANSION, ECONOMIC GROWTH, ECONOMIC INTERDEPENDENCE, ECONOMIC PERFORMANCE, ECONOMIC RESEARCH, ECONOMIC SHOCKS, ECONOMIC VOLATILITY, EMERGING ECONOMIES, EXPORTS, EXPOSURE, FINANCIAL CONSTRAINTS, FINANCIAL CRISES, FINANCIAL CRISIS, FINANCIAL DEVELOPMENT, FINANCIAL MARKETS, FINANCING CONSTRAINTS, FOREIGN CURRENCY, FOREIGN CURRENCY DEBT, FOREIGN DIRECT INVESTMENT, FOREIGN INVESTMENT, FOREIGN INVESTMENTS, FOREIGN OWNERS, FOREIGN OWNERSHIP, FUTURE RESEARCH, GDP, GLOBAL CAPITAL, GLOBAL CAPITAL FLOWS, GROWTH RATES, HOME COUNTRIES, HOME MORTGAGE, HUMAN CAPITAL, INDUSTRIAL COUNTRIES, INPUT-OUTPUT, INSOLVENT, INSOLVENT FIRMS, INSTITUTIONAL INVESTOR, INTERNATIONAL TRADE, LENDERS, LIQUIDITY, LIQUIDITY CONSTRAINTS, LIQUIDITY CRUNCH, MANUFACTURING INDUSTRIES, MANUFACTURING INDUSTRY, MARKET SHARE, MORTGAGE, MORTGAGE INVESTMENT, MULTINATIONAL CORPORATION, MULTINATIONAL CORPORATIONS, MULTINATIONAL FIRMS, OWNERSHIP INFORMATION, PARENT COMPANIES, POLITICAL ECONOMY, PRODUCTIVITY, PROTECTIONISM, PUBLIC REGISTRIES, REVIEW OF ECONOMICS, SALES GROWTH, SHARE OF CAPITAL, STANDARD ERRORS, STOCK PRICES, TAX, TECHNOLOGY TRANSFER, TOTAL OUTPUT, TOTAL REVENUE, TRADE LIBERALIZATION, UNEMPLOYMENT, UNEMPLOYMENT RATE, UNEMPLOYMENT RATES, VERTICAL INTEGRATION, VOLATILITY, WORLD ECONOMY, WORLD TRADE,
Online Access:	http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20120112121253 http://hdl.handle.net/10986/3231
Tags:	Add Tag No Tags, Be the first to tag this record!