全球智库信息集成服务系统(G2TT): DP6348 Privatization, Entry Regulation and the Decline of Labour's Share of GDP: A Cross-Country Analysis of the Network Industries

G2TT

来源类型	Discussion paper
规范类型	论文
来源ID	DP6348
	DP6348 Privatization, Entry Regulation and the Decline of Labour's Share of GDP: A Cross-Country Analysis of the Network Industries
	Alan Manning; John Van Reenen; Ghazala Azmat
发表日期	2007-06-15
出版年	2007
语种	英语
摘要	Capital flight associated with the onset of a financial crisis in a country is often accompanied by an inflow of capital associated with foreign direct investment (FDI). Our paper provides a theoretical framework for this puzzle, and draws wider conclusions on the welfare effects of foreign takeovers. When fundamentals deteriorate, the return that can be pledged to portfolio investors is limited by the incentive constraints of the managers. Only with direct control by investors can the surplus in the project be unlocked. It is precisely during crises that there is the conjunction of the loss of control by incumbent domestic managers, and the lack of domestic capital to take over failing firms. Foreign investors can take over failing firms and capture the surplus, even though they value the assets less. Our theory is consistent with FDI inflows during financial crises being associated with the acquisition of stakes that grant control, rather than simply being acquisitions of cashflow stakes, and is also consistent with the subsequent 'flipping' of the FDI assets, where the asset is sold to investors with higher valuations once the crisis abates.
主题	Financial Economics ; International Trade and Regional Economics
关键词	Capital flight Fdi flows Financial crises Fire sales Foreign takeovers
URL	https://cepr.org/publications/dp6348
来源智库	Centre for Economic Policy Research (United Kingdom)
资源类型	智库出版物
条目标识符	http://119.78.100.153/handle/2XGU8XDN/535176
推荐引用方式 GB/T 7714	Alan Manning,John Van Reenen,Ghazala Azmat. DP6348 Privatization, Entry Regulation and the Decline of Labour's Share of GDP: A Cross-Country Analysis of the Network Industries. 2007.