Financing Multinationals
构建并验证了一个跨国公司模型，连接跨国生产与外国直接投资，解释了三者与金融市场条件的关系，并揭示了金融因素对跨国公司活动和福利的重要影响。
Abstract We develop, validate, and quantify a tractable model of multinational firms that connects multinational production (MP) with foreign direct investment (FDI). Firms choose where to produce and how to finance the production. They can access external finance, but capital market imperfections prevent them from relying exclusively on it for affiliate production, giving rise to FDI. The model rationalizes the three-way relationship between MP, FDI, and financial market conditions that we document and leads to novel welfare implications. Quantification of the model highlights the relevance of these welfare implications and the importance of financial factors in shaping the activities of multinationals.