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Asia and Pacific > Thailand

You are looking at 1 - 3 of 3 items for :

  • Type: Journal Issue x
  • Multinational Firms; International Business x
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Cover IMF Working Papers
Inequality and the Structure of Countries’ External Liabilities
Philipp Harms
,
Mathias Hoffmann
,
Miriam Kohl
, and
Tobias Krahnke
In this paper, we present empirical evidence that higher income inequality is associated with a greater equity share in countries' external liabilities, and we develop a theoretical model that can explain this observation: In a small open economy with traded and nontraded goods, entry barriers depress entrepreneurial activity in nontraded industries and raise income inequality. The small number of domestic nontraded-goods firms leaves room for foreign firms to operate on the domestic market, and it reduces external borrowing. The model suggests that barriers to entrepreneurial activity could be conducive to attract equity-type capital inows. Our empirical results lend some support to this conjecture.
Keywords:
Portfolio Equity; Foreign direct investment; External debt; External liabilities; Income Inequality; entry barrier; equity share; barriers to entrepreneurial activity; traded-goods firm; Income; Portfolio investment; Self-employment; South Asia; East Asia; Foreign corporations
Cover IMF Working Papers
Role of Debt Maturity Structureon Firm Fixed Assets During Sudden Stop Episodes: Evidence From Thailand
Mrs. Hanan Morsy
,
Maria Pia Iannariello
, and
Akiko Terada-Hagiwara
This paper studies the detrimental effect of sudden stops on the growth of Thai firms' fixed assets. We focus on the fixed assets adjustment that firms undertake at times of financial constraints. We derive our results from balance sheet data for 284 nonfinancial Thai listed firms. Our data demonstrate that Thai firms faced severe declines in the growth of their fixed assets starting in 1996. Regression results demonstrate, after controlling for firms' characteristics and lagged dependent variables, that holding longer-term debt maturity structure is the factor that works in the firms' favor during sudden stop episodes, while it is their profitability that matters during tranquil periods.
Keywords:
WP; firm; nontradable firm; balance sheet; fixed asset growth; Firm fixed asset; Sudden Stops; Thailand; Short-term debt maturity structure; Asia financial crisis; characteristics variable; fixed assets adjustment; Structureon firm fixed assets; output firm; firm level; Financial statements; Capital inflows; Consumption; Transnational corporations; Global
Cover IMF Working Papers
Foreign Direct Investment in Emerging Markets: Income, Repatriations and Financial Vulnerabillities
Mr. Alexander Lehmann
Based on U.S. data, the returns on foreign direct investment in emerging markets are shown to be substantially higher than would be suggested by official balance of payments statistics. This paper identifies the determinants of FDI profitability in 43 industrialized and developing countries. After financial leverage and the effect of tax minimizing income transfers are controlled for, host country risk and market openness are found to raise affiliate returns on equity and returns on sales. In the context of a number of financial crises during the 1990s, income repatriations are shown to be pro-cyclical, though the effect of host country recessions is mitigated through continued spending on fixed capital and a re-direction of affiliate sales towards export markets.
Keywords:
WP; return on equity; investor; earnings; Profitability of Foreign Direct Investment; Cashflows in Multinational Corporations; FDI income; FDI inflow; host country FDI statistics; FDI flow; foreign direct investment enterprise; parent company; B. FDI; FDI share; FDI transactions; Foreign direct investment; Personal income; Emerging and frontier financial markets; Wages; Stocks; Asia and Pacific; North America; Africa