Finance and firm export in China

Using a rich panel data set, we provide a rigorous analysis of the relationship between access to external finance, foreign direct investment and the exports of private enterprises in China. We conclude that, in order to foster the exports of indigenous enterprises, the elimination of financial discrimination against private firms is likely to be a more effective policy tool than the reliance on spillovers from multinational firms. © 2007 Blackwell Publishing Ltd

Foreign direct investmant, spillovers and absorptive capacity: Evidence from quantile regressions

This paper focuses on the role of absorptive capacity in determining whether or notdomestic firms benefit from productivity spillovers from FDI using establishment level data for the UK. We distinguish the effect of FDI in the same sector and region from FDI in the same sector but outside the region. We also allow for different effects of FDI on establishments located at different quantiles of the productivity distribution by using conditional quantile regression. Overall, while there is substantial heterogeneity in results across sectors and quantiles, our findings clearly suggest that both absorptive capacity and distance matter for productivity spillover benefits. We find evidence for a u-shaped relationship between absorptive capacity and productivity spillovers from FDI in the region, while there is an inverted u-shaped relationship for spillovers from FDI outside the region. We also analyse in some detail the impact of changes in absorptive capacity on establishments’ ability to benefit from spillovers.foreign direct investment, absorptive capacity, productivity spillovers, quantile regressions

The Political Economy of Financial Liberalisation

Political economy theories of financial development argue that in countries where a narrow elite controls political decisions, financial development may be deliberately obstructed to deny access to finance to potential competitors. This paper empirically examines whether the level of liberalisation of the banking system, the stock market and capital account depend on regime characteristics, using panel data from 26 countries from 1973 – 1999. Our results show that it is predominantly fully democratic regimes that have liberalised financial systems. Countries that are not fully democratic have a lower probability of having liberal banking systems and capital accounts and this probability decreases with increasing democratisation. This suggests that the attractiveness of using financial levers to allocate funds in the economy increases with the amount of competition the government faces, although a fully competitive electoral system creates incentives to relinquish financial control.Financial Repression; Liberalisation;Politics

The Effects of Foreign Acquisition on Domestic and Export Markets Dynamics in China

Using recent data from the Chinese manufacturing industry and the generalised propensity score, this paper establishes economically significant causal effects of foreign acquisition on domestic and export markets dynamics.FDI, export, finance

Foreign ownership, returns to scale and productivity: Evidence from UK manufacturing establishments

This paper focuses on the pattern of returns to scale and productivity growth in UK manufacturing establishments in the electronics and food industries. Our results show that foreign establishments tend to have lower returns to scale than their domestic counterparts. Moreover, foreign acquisition is found to have a negative effect on RTS, especially in the food sector. Finally, establishments in the electronics sector experience a reduction in productivity post acquisition, while plants in the food sector increase productivity.returns to scale, foreign direct investment, acquisitions, productivity

Multinationals, Access to Finance and the Exports of Private Firms in China

Using a rich panel data set, we provide a rigorous analysis of the relationship between access to external finance, foreign direct investment and the exports of private enterprises in China. We conclude that, in order to foster the exports of indigenous enterprises, the elimination of financial discrimination against private firms is likely to be a more effective policy tool than the reliance on spillovers from multinational firms.FDI, export, finance, endogenous Tobit model

Source of Finance, Growth and Firm Size ? Evidence from China

Using a comprehensive firm-level dataset spanning the period 1998-2005, this paper provides a thorough investigation of the relationship between f$China, finance, firm size, growth

Evaluating the foreign ownership wage premium using a difference-indifferences matching approach

This paper seeks to identify the causal effect of foreign acquisitions on wages of skilled and unskilled workers, using difference-in-differences propensity score matching estimators. Our results suggest that there is substantial heterogeneity in the post-acquisition wage effect depending on the nationality of the foreign acquirer and the skill group of workers. We find sizable post acquisition wage effects on skilled and unskilled wages following an acquisition by a US firm. No such impacts result from acquisitions by EU multinationals. Also we discern some positive wage effects for unskilled workers resulting from acquisitions by multinationals from the rest of the world.multinationals, acquisitions, wages, difference-in-differences, matching estimator