Deep Financial Integration and Macroeconomic Volatility
Sebnem Kalemli-Ozcan, Bent Sorensen, and Vadym Volosovych
,
6
(
12
)
Journal of European Economic Association
1558-1585
December
2014
Abstract
We investigate the relationship between foreign direct ownership of firms and firm- and regionlevel output volatility using a novel panel data set for European countries. We document a positive, highly robust, relationship between firm-level foreign ownership and volatility of value added. This relationship holds cross-sectionally and in panels with firm fixed effects where the relationship captures within firm variation over time.