Found 31 article(s) for author 'Laura Alfaro'

Selection and Market Reallocation: Productivity Gains from Multinational Production

Selection and Market Reallocation: Productivity Gains from Multinational Production, Laura Alfaro, September 2014 , Paper, “Quantifying the productivity gains from multinational production has been a vital topic of economic research. Positive productivity gains are often attributed to within-firm productivity improvements due to positive spillovers from multinational to domestic firms. An alternative, less emphasized explanation is between-firm selection and market reallocation, whereby competition from multinationals leads to factor reallocation andthe survival of only the most productive domestic firms…” Link

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Debt Redemption, Reserve Accumulation, and Exchange Rate Regimes

Debt Redemption, Reserve Accumulation, and Exchange Rate Regimes. Laura Alfaro, August 2015, Paper. “Foreign participation in local-currency bond markets in emerging countries has increased dramatically over the past decade. In light of this trend, we revisit sovereign debt sustainability and incentives to default when the sovereign is temporarily excluded from capital markets. Differently from previous analyses, we assume that in addition to accumulating international reserves, countries can borrow internationally using their own currency. As opposed to traditional sovereign debt models (all in foreign currency)…”  Link 

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Sovereign Debt Restructuring: Evaluating the Impact of the Argentina Ruling

Sovereign Debt Restructuring: Evaluating the Impact of the Argentina Ruling. Laura Alfaro, June 16, 2014, Paper. “Recent rulings in the ongoing litigation over the pari passu clause in Argentinian sovereign debt instruments have generated considerable controversy. Some official-sector participants and academic articles have suggested that the rulings will disrupt or impede future sovereign debt restructurings by encouraging holdout creditors to litigate for full payment instead of participating in negotiated exchange offers. This paper critically examines this claim and argues that the incentives for holdout…” Link verified August 21, 2014

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Do Prices Determine Vertical Integration? Evidence from around the World

Do Prices Determine Vertical Integration? Evidence from around the World. Laura Alfaro, June 2014, Paper. “Despite its pertinence for policy, the role of market forces in determining firms’ integration decisions has received relatively little attention in development economics. This paper focuses on the relationship between product prices and vertical integration: while the IO literature has focused on how integration affects prices, we offer evidence that prices can affect integration. Many theories in organizational economics and industrial organization posit that integration, while costly, increases productivity…” Link

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Sovereigns, Upstream Capital Flows and Global Imbalances

Sovereigns, Upstream Capital Flows and Global Imbalances. Laura Alfaro, May 2014, Paper. “We construct measures of net private and public capital flows for a large cross-section of developing countries considering both creditor and debtor side of the international debt transactions. Using these measures, we demonstrate that sovereign-to-sovereign transactions account for upstream capital flows and global imbalances. Specifically, we find (1) international net private capital flows (inflows minus outflows of private capital) are positively correlated with countries’ productivity growth; (2) net sovereign debt flows…” Link verified August 21, 2014

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The Real Effects of Capital Controls: Liquidity Constraints, Exporters, and Firm Investment

The Real Effects of Capital Controls: Liquidity Constraints, Exporters, and Firm Investment. Laura Alfaro, May 2014, Paper. “This paper evaluates the effects of capital controls on firm-level stock returns and real investment using data from Brazil. Theory suggests that the imposition of capital controls can drive up the cost of capital and curb investment. Credit constraints are also more likely to bind for firms that are more dependent on external finance. The data suggest that there is a significant decline in cumulative abnormal returns for Brazilian firms following the imposition of capital controls in 2008-2009 consistent with…” Link verified August 21, 2014

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To Pay Or Not To Pay: Argentina And The International Debt Market

To Pay Or Not To Pay: Argentina And The International Debt Market. Laura Alfaro, April 25, 2014, Opinion. “Argentina’s escalating financial crisis is taking on the look and feel of 2002, when it defaulted on $82 billion worth of sovereign bonds – a move that triggered economic chaos in that nation. Along with Argentina’s current struggles — the sharp devaluation of its currency, rampant inflation, and civil unrest— past financial problems remain unresolved and much on the minds of its creditors, a few of whom have not yet been repaid from the default…” Link verified June 19, 2014

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Do Prices Determine Vertical Integration?

Do Prices Determine Vertical Integration? Laura Alfaro, February 2014, Paper. “What is the relationship between product prices and vertical integration? While the literature has focused on how integration affects prices, this paper provides evidence that prices can affect integration. Many theories in organizational economics and industrial organization posit that integration, while costly, increases productivity. It follows from firms’ maximizing behavior that higher prices induce more integration. The reason is that at low prices, increases in revenue resulting from enhanced productivity are too small to justify the cost, whereas…” Link verified August 21, 2014

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Australia: Commodities and Competitiveness

Australia: Commodities and Competitiveness. Laura Alfaro, January 2014, Case. “For the past few decades, Australia has dealt with the benefits and costs of repeated mining booms—inflation, a housing bubble, a current account deficit and growing dependence on China. Between 1996 and 2007, however, Australia had most of these issues under control and grew at impressive rates, becoming one of the richest of developed countries. Yet competitiveness in its non-mining sectors declined. Since the financial crisis, additional challenges associated with climate change, minerals taxes…” May require purchase or user account. Link

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