@techreport{6dc430dbcba64f39b6ff2898a73eeeaf,
title = "Credit Conditions and Foreign Direct Investment During the Global Financial Crisis",
abstract = "This paper investigates the effect that tight credit conditions had on outward foreign direct investment flows during the 2008-2010 global financial crisis. A difference-in-differences approach is used to isolate a {"}credit channel{"} impact of the global financial crisis on foreign direct investment. The global financial crisis had a stronger negative impact on the relative volume of outward foreign direct investment in financially vulnerable sectors in more financially developed countries, especially if these countries also experienced a banking crisis. These results suggest that lack of access to external finance can partly explain the drop in foreign direct investment during the global financial crisis.",
keywords = "banking crisis, credit constraints, financial development, foreign direct investment, global financial crisis",
author = "Rodolphe Desbordes and Shang-Jin Wei",
year = "2014",
month = oct,
day = "1",
language = "English",
volume = "7063",
series = "World Bank Policy Research Working Paper",
publisher = "World Bank",
type = "WorkingPaper",
institution = "World Bank",
}