The effect of capital inflows on the imports of capital goods in developing countries
The result's identifiers
Result code in IS VaVaI
<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F25840886%3A_____%2F24%3AN0000007" target="_blank" >RIV/25840886:_____/24:N0000007 - isvavai.cz</a>
Result on the web
<a href="https://www.sciencedirect.com/science/article/pii/S0929119923001803?via%3Dihub" target="_blank" >https://www.sciencedirect.com/science/article/pii/S0929119923001803?via%3Dihub</a>
DOI - Digital Object Identifier
<a href="http://dx.doi.org/10.1016/j.jcorpfin.2023.102531" target="_blank" >10.1016/j.jcorpfin.2023.102531</a>
Alternative languages
Result language
angličtina
Original language name
The effect of capital inflows on the imports of capital goods in developing countries
Original language description
This paper examines the relationship between capital inflows and import of capital goods to credit-constrained industries in developing countries. Using data of 11 industrial sectors in 57 countries for 2000–2020, we find that financially dependent industries import disproportionately more capital goods if they operate in countries that receive more foreign funds. A host of robustness tests, including instrumental variables estimation, confirm our main finding. We also document that: (i) the established nexus breaks down during the global financial crisis, (ii) the observed relationship is mainly due to the direct investment via equity, and (iii) host countries tend to import relatively more capital goods from G7 economies. Overall, our results suggest that one channel through which capital inflows affect economic growth is by alleviating firms' financial constraints, thereby enabling firms to acquire more advanced capital goods.
Czech name
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Czech description
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Classification
Type
J<sub>imp</sub> - Article in a specialist periodical, which is included in the Web of Science database
CEP classification
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OECD FORD branch
50204 - Business and management
Result continuities
Project
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Continuities
N - Vyzkumna aktivita podporovana z neverejnych zdroju
Others
Publication year
2024
Confidentiality
S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů
Data specific for result type
Name of the periodical
Journal of Corporate Finance
ISSN
0929-1199
e-ISSN
1872-6313
Volume of the periodical
84
Issue of the periodical within the volume
102531
Country of publishing house
NL - THE KINGDOM OF THE NETHERLANDS
Number of pages
21
Pages from-to
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UT code for WoS article
001152708900001
EID of the result in the Scopus database
2-s2.0-85181736528