THE IMPACT OF G-3 EXCHANGE RATE VOLATILITY ON DEVELOPING COUNTRIES,

This paper describes G-3 exchange rate volatility and evaluates its impact on developing countries. The paper presents empirical evidence showing that G-3 exchange rate volatility has a robust and significantly negative impact on developing countries’ exports. A one percentage point increase in G-3 exchange rate volatility decreases real exports of developing countries by about 2 per cent, on average. G-3 exchange rate volatility also appears to have a negative influence on foreign direct investment to certain regions, and increases the probability of occurrence of exchange rate crises in developing countries. These results imply that greater stability in the international exchange rate system would help improve trade and foreign direct investment prospects for developing countries – and would help prevent currency crises.

Currency Crises: Is Central America Different?

In a recent paper we analyzed the determinants of currency crises in a sample of 30 high and middle income countries (Esquivel and Larrain, 1998). In this work we focus on Central America and analyze whether the determinants of currency crises in this region are different from those identified in our previous work. We conclude that they are not, and show that a small set of macroeconomic variables helps to explain the currency crises that took place in Central America between 1976 and 1996. The results of tests applied here support the empirical approach that attempts to explain currency crises by focusing on the behavior of a few macroeconomic indicators. Part of the interest of this result stems from the fact that the Central American countries had an exchange rate system markedly different from that prevailing in the economies that are usually analyzed in similar studies.

Investor protection and corporate control

We argue that investor protection changes the relative importance of productivity and scale as drivers of corporate control transfers. Using a large sample of European firms we find that control transfers are more correlated with increasing profitability and less correlated with increasing size when investor protection is strong. This suggests that improving productivity is more important as a driver of acquisitions when investor protection is strong, and alleviating financial constraints or empire building are more important when investor protection is weak. Our evidence is consistent with the idea that good investor protection promotes a more productive use of corporate assets

How Do Internal Capital Markets Work? Evidence from the Great Recession

We study the inner workings of internal capital markets during the 2008-9 recession using a unique dataset of loans between business-group firms in an emerging market. Intra-group loans increase quickly during the recession. Firms that are more central in the ownership network simultaneously increase lending and borrowing. Acting like simple intermediaries, central firms do not increase net lending. Our results imply that formal control rights are essential for intermediation in internal capital markets, particularly during distress. In line with previous results on winner-picking, receivers of intra-group loans are high-Q, financiallyconstrained firms, which also perform significantly better than providers during the recession

The Effects of Losing a Business Group Affiliation

We propose a novel identification strategy for estimating the effects of business group affiliation. We study two-firm business groups, some of which split up during the sample period, leaving some firms as stand-alone firms. We instrument for stand-alone status using shocks to the industry of the other group firm. We find that firms that become stand-alone reduce leverage and investment. Consistent with collateral cross-pledging, the effects are more pronounced when the other firm had high tangibility. Consistent with capital misallocation in groups, the reduction in leverage is stronger in firms that had low (high) profitability (leverage) relative to industry peers

Ownership Concentration and Firm Value: New Evidence from Owner Stakes in IPOs

We study the relationship between ownership concentration and firm value using hand‐collected data on the stakes of owner‐managers before and after IPOs. We instrument for the reduction in stake using market returns shortly before IPOs. Short‐run market returns are plausible instruments since owners engage in market timing by selling more when prior returns are high, but high short‐run returns are unlikely to directly affect firm value years after the IPO. As predicted by agency theory, a large reduction in ownership concentration at the IPO is negatively related to valuation. Future asset growth is low when owners have low stakes

Un yacimiento de cazadores-recolectores marinos en la terraza litoral de Bajo Patache, sur de Iquique

El presente artículo presenta los nuevos e importantes descubrimientos en la terraza litoral al pie del oasis de niebla, a partir de Noviembre de 2003, que junto a estudios anteriores conforman un cuadro general bastante completo de los patrones de asentamiento, modus vivendi, costumbres y actividades económicas de los antiguos pobladores costeros del norte de Chile, que reafirman la enorme importancia que adquirió el ecosistema de oasis de niebla costero en el género de vida, tipos de asentamiento y desplazamientos de los cazadores-recolectores marinos del litoral norte.Cet article présente les nouvelles et importantes découvertes dans la terrasse littorale se trouvant au pied de l’oasis de brume, à partir de Novembre 2003, lesquelles, associées à des études antérieures, conforment un cadre général très complet de patrons d’établissement, modus vivendi, d’habitudes et d’activités économiques des anciens habitants de la côte dans le nord du Chili, ce qui renforce l’importance de l’écosystème de l’oasis de brume côtier quant à la connaissance du mode de vie, de types d’établissement et de déplacements des chasseurs-cueilleurs marins du littoral du nord.This paper presents important new findings on the terrace at the foot of coastal mist oases, from November 2003, which together with previous studies form a fairly complete picture of settlement patterns, modus vivendi, customs and economic activities of the ancient inhabitants of northern coastal Chile, to reaffirm the great importance that acquired the ecosystem of coastal mist oases in the way of life, types of settlement and displacement of hunter-gatherers of the north coast marine

Un yacimiento de cazadores-recolectores marinos en la terraza litoral de Bajo Patache, sur de Iquique

El presente artículo presenta los nuevos e importantes descubrimientos en la terraza litoral al pie del oasis de niebla, a partir de Noviembre de 2003, que junto a estudios anteriores conforman un cuadro general bastante completo de los patrones de asentamiento, modus vivendi, costumbres y actividades económicas de los antiguos pobladores costeros del norte de Chile, que reafirman la enorme importancia que adquirió el ecosistema de oasis de niebla costero en el género de vida, tipos de asentamiento y desplazamientos de los cazadores-recolectores marinos del litoral norte.Cet article présente les nouvelles et importantes découvertes dans la terrasse littorale se trouvant au pied de l’oasis de brume, à partir de Novembre 2003, lesquelles, associées à des études antérieures, conforment un cadre général très complet de patrons d’établissement, modus vivendi, d’habitudes et d’activités économiques des anciens habitants de la côte dans le nord du Chili, ce qui renforce l’importance de l’écosystème de l’oasis de brume côtier quant à la connaissance du mode de vie, de types d’établissement et de déplacements des chasseurs-cueilleurs marins du littoral du nord.This paper presents important new findings on the terrace at the foot of coastal mist oases, from November 2003, which together with previous studies form a fairly complete picture of settlement patterns, modus vivendi, customs and economic activities of the ancient inhabitants of northern coastal Chile, to reaffirm the great importance that acquired the ecosystem of coastal mist oases in the way of life, types of settlement and displacement of hunter-gatherers of the north coast marine