Publications

05 Oct 2011
Working Paper Summaries

Doing What the Parents Want? The Effect of the Local Information Environment on the Investment Decisions of Multinational Corporations

Keywords: by Nemit O. Shroff, Rodrigo S. Verdi & Gwen Yu

2009
Working Paper

Watch What I Do, Not What I Say: The Unintended Consequences of the Homeland Investment Act

By: Dhammika Dharmapala, C. Fritz Foley and Kristin J. Forbes

This paper analyzes the impact on firm behavior of the Homeland Investment Act of 2004, which provided a one-time tax holiday for the repatriation of foreign earnings by U.S. multinationals. The analysis controls for endogeneity and omitted variable bias by using... View Details

Keywords: Investment; Multinational Firms and Management; Government Legislation; Taxation; Business and Shareholder Relations; Behavior; United States

June 2011
Article

Watch What I Do, Not What I Say: The Unintended Consequences of the Homeland Investment Act

By: Dhammika Dharmapala, C. Fritz Foley and Kristin J. Forbes

This paper analyzes the impact of the Homeland Investment Act of 2004, which provided a one-time tax holiday for the repatriation of foreign earnings and thereby reduced the cost to U.S. multinationals of accessing a source of internal capital. Lawmakers and lobbyists... View Details

Keywords: Investment; Performance Effectiveness; Code Law; Taxation; Cost; Capital; Financial Strategy; Research and Development; Governing Rules, Regulations, and Reforms; Business and Shareholder Relations; United States

2014
Book

Los Buenos Tiempos Son Éstos: Los efectos de la incursión de la banca extranjera en México después de un siglo de crisis bancarias [These Are the Good Old Days: Foreign Entry and the Mexican Banking System]

By: Stephen Haber and Aldo Musacchio

This book is the Spanish edition of our award winning paper "These Are the Good Old Days: Foreign Entry and the Mexican Banking System." NBER Working Paper Series, No. 18713, January 2013. The book examines the effects of foreign bank entry into Mexico. Foreign banks... View Details

Keywords: Banks And Banking; Mexico; Commercial Banking; Foreign Direct Investment; Competition; Financial Markets; Banking Industry; Mexico

Research Summary

Markets of Progress: Coffee, Commerce, and Community in the Soconusco, Chiapas, 1867-1920

Markets of Progress presents a new holistic story of rural development in Mexico at the turn of the century. In the Soconusco, as in regions throughout the world, the accelerating circulation of commodities and capital, ideas and immigrants reshaped society... View Details

Keywords: Commodities; Coffee; Mexico; Foreign Investment; Institutions; Immigration; Developing Agriculture; Development; Export Crop; Emerging Market; Property Rights; Labor History; History; Capital Markets; Business History; Agriculture and Agribusiness Industry; Latin America; Mexico; Central America

2022
Article

Climate Change Vulnerability and Currency Returns

By: Alex Cheema-Fox, George Serafeim and Hui (Stacie) Wang

Using measures of physical risk from climate change, we develop a methodology to allocate currency pairs according to a country’s vulnerability and construct portfolios with decreasing vulnerability to physical risk. We show that non-G10 currencies are more vulnerable... View Details

Keywords: Climate Finance; Vulnerabilities; Currencies; Foreign Exchange; Climate Change; Currency; Natural Disasters

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Research Summary

Overview

My research aims to understand how prosperity is created in poor countries. My first “chapter” in this larger quest has focused on how rich-country actors have managed to be a force for change in poor-country economies. I have investigated the various attempts of... View Details

Keywords: Foreign Aid; Africa; Private Sector Development; Economic Development; Political Economy; Fragile States; Governance; Private Sector; Emerging Markets; Development Economics; Non-Governmental Organizations; Natural Disasters; Africa; Liberia

February 2016 (Revised September 2017)
Case

Mohamed Azab and Seha Capital

By: Richard G. Hamermesh and Sarah McAra

In January 2011, Mohamed Azab, founder and CEO of health care investment firm Seha Capital, made his first health care investment in Hassab Labs, a diagnostic lab in Alexandria, Egypt. Weeks later, a revolution erupted across the country as the Arab Spring swept... View Details

Keywords: Health Care; Health; Pan-Africa; Health Care Investment; Financing; Developing World; Entrepreneurship; Health Care and Treatment; Investment; Financing and Loans; Developing Countries and Economies; Egypt; Africa

September 2017
Article

The Real Effects of Capital Controls: Firm-Level Evidence from a Policy Experiment

By: Laura Alfaro, Anusha Chari and Fabio Kanczuk

Emerging-market governments adopted capital control taxes to manage the massive surge in foreign capital inflows in the aftermath of the global financial crisis. Theory suggests that the imposition of capital controls can drive up the cost of capital and curb... View Details

Keywords: Capital Controls; Discriminatory Taxation; International Investment Barriers; Exports; Debt; Cost of Capital; Taxation; Investment; Borrowing and Debt; Equity; Brazil

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July 2018 (Revised July 2018)
Teaching Note

Argentina Power—Don’t Cry for Me Argentina

By: Nori Gerardo Lietz and Sayiddah Fatima McCree

Teaching Note for HBS No. 218-041. This case concerns a complex potential energy infrastructure investment in Argentina by a global conglomerate shortly after Mauricio Macri (“Macri”) became President of Argentina in 2015. The central issues are (i) why was a country... View Details

Keywords: Argentina; Argentine Exceptionalism; Infrastructure Finance; Investing; Finance; Inflation and Deflation; Government and Politics; Energy Generation; Infrastructure; Utilities Industry; Energy Industry; Financial Services Industry; Argentina; South America

December 2016 (Revised December 2018)
Case

From Start-Up to Grown-Up Nation: The Future of the Israeli Innovation Ecosystem

By: Elie Ofek and Margot Eiran

In June 2016, Benjamin (Bibi) Netanyahu, Prime Minister of Israel, wrestled with how to sustain Israel’s strong innovation track record and the country’s reputation as the “startup nation.” Despite the economic miracle the country had wrought since its founding, he... View Details

2022
Working Paper

Multinationals and Varieties of Capitalism: When U.S. Giants Stepped into the Swiss Coordinated Labor Market in the 1950s

By: Sabine Pitteloud

This working paper investigates unintended consequences of U.S. FDI in Switzerland in the 1950s-1960s: the increased competition that U.S. firms generated within the national labor market and the challenge their hiring practices constituted for the institutional... View Details

Keywords: Multinationals; Capitalism; Business ＆ Government Relations; Foreign Direct Investment; Immigration Policy; History; Switzerland; Americanization; R＆D; Labor History; Labor Market Institutions; Tax Havens; ＂USA,＂; Business Interest Association; Lobbying; Labor and Management Relations; Business History; Multinational Firms and Management

SSRN

09 Dec 2002
Research & Ideas

Unilever—A Case Study

This article considers key issues relating to the organization and performance of large multinational firms in the post-Second World War period. Although foreign direct investment is defined by ownership and... View Details

Keywords: by Geoffrey Jones; Consumer Products; Entertainment & Recreation; Food & Beverage; Manufacturing; Retail

13 Oct 2020
Working Paper Summaries

Fencing Off Silicon Valley: Cross-Border Venture Capital and Technology Spillovers

Keywords: by Ufuk Akcigit, Sina T. Ates, Josh Lerner, Richard Townsend, and Yulia Zhestkova; Financial Services

January 2024
Article

Fencing Off Silicon Valley: Cross-Border Venture Capital and Technology Spillovers

By: Ufuk Akcigit, Sina T. Ates, Josh Lerner, Richard Townsend and Yulia Zhestkova

The treatment of foreign investors is a contentious topic in U.S. entrepreneurship policy. We model a setting where foreign corporate investments in Silicon Valley may allow U.S. entrepreneurs to pursue technologies that they could not otherwise, but may also lead to... View Details

Keywords: Innovation; Corporate Venture Capital; Knowledge Spillovers; Foreign Direct Investment; Innovation and Invention; Venture Capital; Entrepreneurship; Policy

SSRN

January 1994
Case

China (B): Polaroid of Shanghai Ltd.

By: Debora L. Spar

Examines the experience of Polaroid of Shanghai Ltd. (PSL), a joint venture between the U.S.-based Polaroid Corp. and the Shanghai Motion Picture Industry Co., within the framework of China's foreign investment climate. Discusses the evolution of foreign investment in... View Details

Keywords: Joint Ventures; Foreign Direct Investment; China; United States

30 Jul 2008
Op-Ed

Why the U.S. Should Encourage FDI

such investments have already begun to percolate. Are these concerns warranted? If history is any guide, foreign investors in the United States have more to worry about than domestic regulators do. The... View Details

Keywords: by Mihir A. Desai

March 1995
Article

Tests of Conditional Mean-Variance Efficiency of the U.S. Stock Market

By: C. Engel, J. Frankel, Kenneth A. Froot and T. Rodrigues

Keywords: Risk Aversion; Risk; International Investing; CAPM; Capital Asset Pricing; International Finance; Risk and Uncertainty; Asset Pricing; Financial Markets; Foreign Direct Investment; Behavioral Finance; United States

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September 2016 (Revised September 2016)
Case

The Tavistock Group and the Australian Agricultural Company

By: Dante Roscini and Matthew Preble

In late 2015, Dr. Shehan Dissanayake, a managing director and board member of Bahamian investment firm The Tavistock Group (Tavistock), the largest shareholder in the Australian Agricultural Company (AACo), one of the country's largest agribusinesses, faces a... View Details

Keywords: Agribusiness; Foreign Direct Investment; Cross-Cultural and Cross-Border Issues; Business and Government Relations; Agriculture and Agribusiness Industry; Australia; Bahamas