KCG Journal Articles

How Borrowing Constraints Hinder Migration: Theoretical Insights from a RUM Model

2nd April 2019
KCG Secretary
Authors: Léa Marchal and Claire Naiditch (Forthcoming, Scandinavian Journal of Economics)

We provide a theoretical framework to analyze how financial constraints hinder migration. Introducing wealth heterogeneity and borrowing constraints into a RUM model of migration, we find evidence of multilateral resistance to migration stemming from borrowing constraints[…]

Die Effekte deutscher Direktinvestitionen im Empfängerland vor dem Hintergrund des Leistungsbilanzüberschusses: Empirische Evidenz mit Mikrodaten für Frankreich

21st February 2019
KCG Secretary
Autoren: Holger Görg und Léa Marchal (in Kürze erscheinend, Perspektiven der Wirtschaftspolitik)

Deutschland hat seit Jahren einen Leistungsbilanzüberschuss, der international kritisiert wird. Die Bedeutung der deutschen Direktinvestitionen im Ausland ist dabei in den letzten Jahren stark angestiegen. Vor diesem Hintergrund untersucht diese Studie die Effekte von Direktinvestitionen auf Unternehmen im Gastland. Dazu werden Unternehmensdaten für Frankreich verwendet. Insgesamt liefert die Studie zwei wirtschaftspolitisch relevante Ergebnisse. Zum einen haben deutsche Übernahmen von französischen Unternehmen im Durchschnitt keine negativen Auswirkungen auf Produktivität, Qualifikationsstruktur und Handelsaktivität der übernommenen Unternehmen. Zum anderen zeigt sich[…]

Chinese Direct Investment in Europe – Challenges for EU FDI Policy

31st January 2019
KCG Secretary
Authors: Frank Bickenbach and Wan-Hsin Liu ( CESifo Forum, 2018, 4, Vol. 19)

Chinese foreign direct investment (FDI) into the European Union (EU) has increased substantially over the last decade. Whereas the EU generally welcomes inward FDI, FDI from China has been often accompanied by concerns. In view of these developments, the EU now faces the challenge of reforming its FDI policy in such a way as to simultaneously (i) defend the EU’s current openness to FDI (including from China); (ii) address the security concerns that have been raised for some types of FDI[…]

International Trade and Retail Market Performance and Structure: Theory and Empirical Evidence

30th August 2018
KCG Secretary
Authors: Philipp Meinen and Horst Raff (Journal of International Economics,2018, Vol. 115, 99-114)

Based on a theoretical model featuring heterogeneous retailers that may source globally and operate as chains, we derive a number of hypotheses that link trade integration to retail firm performance and to the structure of retail markets. We empirically test these predictions using Danish microdata for the period 1999 to 2008. We find that importing retailers are larger, more profitable, and have a higher propensity to have multiple shops than domestically sourcing[…]

Incentives through Inventory Control in Supply Chains

19th June 2018
KCG Secretary
Authors: Zhan Qu, Horst Raff and Nicolas Schmitt (International Journal of Industrial Organization, 2018, 59, 486-513)

The paper shows that taking inventory control out of the hands of competitive or exclusive retailers and assigning it to a manufacturer increases the value of a supply chain especially
for goods whose demand is highly volatile. This is because doing so solves incentive distortions[…]

Attracting FDI in Middle-skilled Supply Chains

15th June 2018
KCG Secretary
Authors: Theordore Moran, Holger Görg, Adnan Seric and Christiane Krieger-Boden (Economics: The Open-Access, Open-Assessment E-Journal, 12 (2018-26), 1-9)

While popular opinion often pictures FDI flowing in search of lowest-wage, lowest-skilled activities in emerging markets, actual FDI to such countries increasingly addresses medium to high-skilled manufacturing sectors. Such FDI might be called “Quality FDI” that contributes to the creation of decent and value-adding jobs, enhancing the skill base of host economies, facilitating transfer of technology, knowledge and know-how, boosting competitiveness of domestic firms and enabling their access to world-wide markets[…]

Financial Frictions and Foreign Direct Investment: Evidence from Japanese Microdata

5th April 2018
KCG Secretary
Authors: Horst Raff, Michael Ryan and Frank Stähler (Journal of International Economics, 2018, 112, 109-122)

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[…]