In this paper we investigate the diversification effects when stock market returns are c orrelated with foreign exchange rates. We first show that when equity markets and cu rrency market are correlated, even an identical equally weighted portfolio using equiti es from two countries will yield different diversification effects depending on which c ountry’s currency the returns are measured. We ...

We examine how foreign ownership of a firm affects the variety of goods that the firm exports and the number of countries it trades with. We construct a simple theoretical model of how foreign ownership may affect these extensive margins of exports and take this model to data from Germany, one of the leading actors on the world market for goods. In line with theoretical predictions we find that...

This paper investigates the productivity effects of inward and outward foreign direct investment using industry and country level data for 17 OECD countries over the period 1973 to 2001. Controlling for national and international knowledge spillovers we argue that effects of FDI work through direct compositional effects as well as changing competition in the host country. Our results show that ...

Do Southern intellectual property rights (IPRs) affect Northern innovation? There is much theoretical debate on the impact of IPRs in the South on the incentives of Northern firms to innovate and transfer technologies to the South. While empirical research exists on the effects of Southern IPRs on Northern technology transfers, empirical evidence on the effects of Southern IPRs on Northern inno...

Do cultural differences deter or facilitate accounting-manipulation practices propagated across countries? While firms attempt to operate in countries that offer the best opportunities to maximize returns on their investments, their managers’ acquaintance with different practices at foreign subsidiaries generates contagion effects that eventually influence the firms’ opportunistic accounting de...

This version: March 3, 2004 This draft is very preliminary and incomplete. Please do not quote or circulate. Comments are welcome. Abstract Using the data from World Business Environment Survey (WBES) on over 10,000 firms across eighty one countries, this paper finds significant regulatory advantages—as perceived by the firms themselves—enjoyed by foreign firms over domestic firms. The findings...

In this paper we argue that foreign direct investment in the transition countries has a dynamic nature, by using firm level data for nine transition countries for the period 1996-2002. Moreover, we differentiate the sectors of activity by the degree of technology involved, using the OECD classification based on technology. By doing this, our empirical model proves that there is some heterogenei...

D OF COUNTRIES around the world have suffered civil conflicts in the past few decades, with the highest concentration in Sub-Saharan Africa. The humanitarian consequences have been staggering: at least 3 million civilian deaths in the Democratic Republic of the Congo’s (the former Zaire) civil war, and millions of other deaths in Sudan, Rwanda, Sierra Leone, Angola, Somalia, Uganda, Mozambique,...

OBJECTIVE To determine the association of reductions in price of antiretroviral drugs and foreign assistance for HIV with coverage of antiretroviral treatment. DESIGN Retrospective study. SETTING Africa. PARTICIPANTS 13 African countries, 2003-8. MAIN OUTCOME MEASURES A price index of first line antiretroviral therapy with data on foreign assistance for HIV was used to estimate the asso...

Abstract The study examines the growth effects of foreign direct investment on environmental quality in Nigeria between 1970 and 2013. Variables like per capita income, environmental degradation, foreign direct investment, human capital, inflation, trade openness, interest rate, and the interaction term between foreign direct investment and carbon emission were employed in the study. A long r...