The international propagation of economic downturns through multinational companies: The real economy channel *

• 成果类型: Article
• 署名作者: Bena, Jan; Dinc, Serdar; Erel, Isil
• 署名单位: University of British Columbia; Rutgers University System; Rutgers University Newark; Rutgers University New Brunswick; National Bureau of Economic Research; University System of Ohio; Ohio State University
• 刊物名称: JOURNAL OF FINANCIAL ECONOMICS
• ISSN/ISSBN: 0304-405X
• DOI: 10.1016/j.jfineco.2021.09.005
• 发表日期: 2022
• 页码: 277-304
• 关键词: propagation; contagion; Real economy channel; INVESTMENT; MNC; transmission; CRISIS

摘要

We study how non-financial multinational companies propagate economic declines from their subsidiaries located in countries experiencing an economic downturn to subsidiaries in countries not experiencing one. We find that investment is 18% lower in subsidiaries of these parents relative to the same-industry, same-country subsidiaries of parents that are headquartered in the same parent country but do not have a subsidiary in a country expe-riencing an economic downturn. The employment growth rate in the affected subsidiaries is zero or negative while it is 1.4% in the subsidiaries of unaffected parents. The aggregate industry-level sales and employment are also negatively impacted in the countries of the affected subsidiaries.(c) 2021 Elsevier B.V. All rights reserved.