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Fire-Sale FDI? The impact of financial crises on foreign direct investment

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dc.contributor.author Bogach, Olga
dc.contributor.author Noy, Ilan
dc.date.accessioned 2012-03-30T00:16:38Z
dc.date.accessioned 2022-07-05T02:30:46Z
dc.date.available 2012-03-30T00:16:38Z
dc.date.available 2022-07-05T02:30:46Z
dc.date.copyright 2012
dc.date.issued 2012
dc.identifier.uri https://ir.wgtn.ac.nz/handle/123456789/18630
dc.description.abstract In this paper, we analyze the evolution of foreign direct investment (FDI) inflows to developing and emerging countries around financial crises. We empirically and thoroughly examine the Fire‐Sale FDI hypothesis and describe the pattern of FDI inflows surrounding financial crises. We also add a more granular detail about the types of financial crises and their potentially differential effects on FDI. We distinguish between Mergers and Acquisitions (M&A) and Greenfield investment, as well as between different motivations for FDI—horizontal (tariff jumping) and vertical (integrating production stages). We find that financial crises have a strong negative effect on inward FDI in our sample. Crises are also shown to reduce the value of horizontal and vertical FDI. We do not find empirical evidence of Fire‐Sale FDI. On the contrary, financial crises are shown to affect FDI flows and M&A activity adversely. en_NZ
dc.format pdf en_NZ
dc.language.iso en_NZ
dc.publisher Te Herenga Waka—Victoria University of Wellington en_NZ
dc.relation.ispartofseries SEF Working Paper Series en_NZ
dc.subject International investment en_NZ
dc.subject Foreign direct investment (FDI) en_NZ
dc.subject Financial crises en_NZ
dc.subject Mergers and Acquisitions en_NZ
dc.subject Multinational firms en_NZ
dc.title Fire-Sale FDI? The impact of financial crises on foreign direct investment en_NZ
dc.type Text en_NZ
vuwschema.contributor.unit School of Economics and Finance en_NZ
vuwschema.subject.anzsrcfor 149999 Economics not elsewhere classified en_NZ
vuwschema.subject.marsden 149999 Economics not elsewhere specified en_NZ
vuwschema.type.vuw Working or Occasional Paper en_NZ
vuwschema.subject.anzsrcforV2 389999 Other economics not elsewhere classified en_NZ
dc.rights.rightsholder www.vuw.ac.nz/sef en_NZ

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