Financial frictions and foreign direct investment: Evidence from Japanese microdata

• 成果类型: Article
• 署名作者: Raff, Horst; Ryan, Michael; Staehler, Frank
• 署名单位: University of Kiel; Leibniz Association; Ifo Institut; University of Kiel; Western Michigan University; Eberhard Karls University of Tubingen; University of Adelaide
• 刊物名称: JOURNAL OF INTERNATIONAL ECONOMICS
• ISSN/ISSBN: 0022-1996
• DOI: 10.1016/j.jinteco.2018.02.006
• 发表日期: 2018
• 页码: 109-122
• 关键词: foreign direct investment; Multinational enterprise; Credit rationing; collateral; Bank health; JAPAN

摘要

Using Japanese microdata for the period 1980 to 2000 we find evidence for two transmission channels from financial shocks to foreign direct investment: a collateral channel, whereby changes in the value of investors' landholdings affect their borrowing ability; and a lending channel, whereby changes in bank health affect banks' lending ability. Decreasing land values by 55% on average from their peak in 1990 to the sample mean reduces the predicted number of investments by 17%. Reducing banks' market-to-book ratios by an average 61% from their high in 1986 to the sample mean lowers predicted investment counts by 21%. (C) 2018 Elsevier B.V. All rights reserved.