题目：Foreign Direct Investment and Debt Financing in Emerging Economies
Abstract： This paper analyzes the dynamic pattern of capital financing in emerging economies over the business cycle. We show empirically that in normal periods, FDI and external debt financing are procyclical while, during crises, FDI is countercyclical whereas external debt remains procyclical. We then build a small open economy model with borrowing constraints and technology spillovers from foreign multinationals to explain the pattern of capital inflows to emerging economies. Our calibrated model generates procyclical FDI and debt following a productivity shock, and a large fall in debt financing and a small positive change in FDI following a financial shock consistent with our empirical observations on emerging economies.
Hong Kong Baptist University