1,720,993 research outputs found
Symbiotic relationships among formal and informal institutions: Comparing five Brazilian cultural ecosystems
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Chinese infrastructure lending in Africa and participation in global value chains
No full textWe explore the extent to which Chinese lending to African countries promotes participation in Global Value Chains (GVC). Using loan-level data on Chinese and World Bank lending to 37 African countries between 2000 and 2018 we find that in contrast to World Bank lending, Chinese lending is associated positively with an increased GVC participation. This association is driven by infrastructure lending, which is likely to reduce trade costs, making it easier to participate in GVCs. This increased GVC participation is persistent over time and concentrated on the downstream sectors and, thus, is likely to contribute to export and productivity growth
The geography of acquisitions and greenfield investments: Firm heterogeneity and regional institutional conditions
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The geography of acquisitions and greenfield investments: Firm heterogeneity and regional institutional conditions
No full textThis paper investigates how institutional conditions at national and regional levels shape the decisions of Multinational Enterprises (MNEs) to invest abroad by means of either acquisitions or greenfield investments. The empirical analysis covers all Foreign Direct Investment (FDI) projects in the European Union by the largest MNEs in the world to study alternative choices by the same firm and account for firm-level characteristics in investment decisions. The empirical results show that - other things being equal - regions with stronger investment eco-systems are more likely to attract acquisitions, while greenfield investments are more likely in regions with comparatively weaker systemic conditions. Howerver, the regional quality of institutions makes a fundamental difference to the nature of the investment projects attracted by regions: those with high quality of government can attract greenfield investments undertaken by the most productive MNEs. By improving their quality of government, local and regional policy makers can attract higher quality greenfield investment projects to their constituencies, potentially breaking the vicious circle between low productivity areas and low productivity FDI
Chinese and Indian MNEs’ shopping sprees in advanced countries. How good is it for their innovation output?
No full textMinimum global tax: winners and losers in the race for mergers and acquisitions
No full textIn the context of the OECD’s reform of international taxation, the paper quantifies the impact of the global minimum corporate tax rate on large multinational crossborder mergers and acquisitions. Within a gravity model specification, it examines how differences in capital taxation may drive bilateral cross-border mergers and acquisitions, taking into account both the direct and indirect distortionary effects of taxes. The empirical exercise exploits a large purpose-built dataset comprising 13,562 investor-firm M&As data points from 2001 to 2020, in (at the 516 4-digit level) industries times 109 “source” countries, matched with 559 (also at the 4-digit) industries times 161 “target” countries. In line with a simple theoretical model underpinning the mechanisms of transmission, the empirical results suggest that M&As flows are higher when the source and target countries have closer tax rates. Next, whenever the target country’s corporate tax rate is lower than 15%, the gravity model estimates the impact of the 15% global minimum tax rate on cross-border
investments by firms whose revenue exceeds the €750 millions threshold. The simulation shows that the overall effect of the global minimum corporate tax on M&As flows would be negative, but small in magnitude. Less developed economies would be comparatively the most affected area. As a percentage of expected flows, developing countries would experience the largest decrease. In absolute terms, the biggest decrease in outflow investments would be among OECD countries, while the biggest drop in inflow investments would be among high-income non-OECD countries
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