Credit Conditions and Foreign Direct Investment During the Global Financial Crisis

Desbordes, Rodolphe ; Wei, Shang-Jin

World Bank Group, Washington, DC

关键词: ACCESS TO CAPITAL;    ACCESS TO CREDIT;    ACCESS TO EXTERNAL FINANCE;    ACCESSIBILITY;    ADVERSE SELECTION;   

DOI  :  10.1596/1813-9450-7063
RP-ID  :  WPS7063

学科分类：社会科学、人文和艺术（综合）

来源: World Bank Open Knowledge Repository

【 摘 要 】

This paper investigates the effect thattight credit conditions had on outward foreign directinvestment flows during the 2008-2010 global financialcrisis. A difference-in-differences approach is used toisolate a "credit channel" impact of the globalfinancial crisis on foreign direct investment. The globalfinancial crisis had a stronger negative impact on therelative volume of outward foreign direct investment infinancially vulnerable sectors in more financially developedcountries, especially if these countries also experienced abanking crisis. These results suggest that lack of access toexternal finance can partly explain the drop in foreigndirect investment during the global financial crisis.