The Few Leading the Many: Foreign Affiliates and Business Cycle Comovement
研究发现法国各地区外国子公司的存在会增强其所在地区与母国之间的商业周期联动，且这一效应并非主要由贸易驱动。
This paper argues that the correlation of business cycles across countries is largely due to linkages between multinational firms and their foreign affiliates. There are very few foreign affiliates in France, but they contribute considerably to aggregate economic activities. We exploit the heterogeneity in the presence and origin of foreign affiliates across French regions to identify their impact on comovement. We find a positive impact of foreign affiliates' presence on the comovement of business cycles between their regions of location and their countries of origin. This effect is not primarily driven by foreign affiliates' trade with their countries of origin.