Tracing the International Transmission of a Crisis through Multinational Firms
Abstract/Contents
- Abstract
- We study how shocks to individual firms propagate globally, beyond countries where shocked firms operate. We identify a shock to one firm, a German bank, which resulted in a lending cut to German firms. Multinational parent firms located in Germany were directly harmed by the lending cut. International affiliates of affected multinationals supported their parents through internal lending and their real growth fell sharply. The total impact in foreign countries was large. The findings reveal that shocks to individual firms can impact growth internationally, even if firms operate only in one country, and that global internal capital markets propagate shocks.
Description
| Type of resource | text |
|---|---|
| Date created | August 23, 2021 |
Creators/Contributors
| Author | Biermann, Marcus |
|---|---|
| Author | Huber, Kilian |
| Organizer of meeting | Matvos, Gregor |
| Organizer of meeting | Seru, Amit |
Subjects
| Subject | economics |
|---|---|
| Genre | Text |
| Genre | Working paper |
| Genre | Grey literature |
Bibliographic information
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- User agrees that, where applicable, content will not be used to identify or to otherwise infringe the privacy or confidentiality rights of individuals. Content distributed via the Stanford Digital Repository may be subject to additional license and use restrictions applied by the depositor.
- License
- This work is licensed under a Creative Commons Attribution 4.0 International license (CC BY).
Preferred citation
- Preferred citation
- Biermann, M. and Huber , K. (2022). Tracing the International Transmission of a Crisis through Multinational Firms. Stanford Digital Repository. Available at https://purl.stanford.edu/gf072dk4288
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SITE Conference 2021
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