Found 30 article(s) for author 'Laura Alfaro'

Brazil’s Enigma: Sustaining Long-Term Growth

Brazil’s Enigma: Sustaining Long-Term Growth. Laura Alfaro, September 2013, Case. “Over the past decade, Brazil’s future as a leading world economic power appeared certain. An expanding middle class and commodity boom had fueled economic growth, with GDP growth hitting a peak of 7.5% in 2010. However, the high cost of conducting business in Brazil, known as “Custo Brasil,” was hurting domestic manufacturing, while incoming foreign investments threatened to overwhelm Brazilian markets. Under President Dilma Rousseff, economic growth stagnated, and the Rousseff administration struggled to find the best balance between reducing…” May require purchase or user account. Link

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Pseudo-flexible exchange-rate regimes

Pseudo-flexible exchange-rate regimes. Laura Alfaro, July 15, 2013, Paper. “According to the IMF, last decade saw a number of countries actively managing their exchange rates. Is this a good way for emerging economies to protect themselves from the large swings of international markets? This column presents a new ‘pseudo-flexible’ exchange rate policy for emerging economies that is both sustainable and allows for accumulating reserves in conjunction with domestic debt; resulting in low exchange-rate volatility…”  Link verified March 28, 2014

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Kinyuseisaku: Monetary Policy in Japan ©

Kinyuseisaku: Monetary Policy in Japan. Laura Alfaro, May 8, 2013, Case. “Assuming office in December 2012, Prime Minister Shinzo Abe was determined to revive Japan’s stagnating economy through an ambitious plan known as ‘Abenomics.’ Under the guidance of the newly appointed governor of the central bank, Haruhiko Kuroda, the Bank of Japan adopted quantitative easing as its new monetary policy, pledging to double the nation’s monetary base in two years through the purchase of long-term government bonds. While Kuroda insisted that Japan needed…”  May require purchase or user account. Link verified March 28, 2014

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Currency Wars

Currency Wars. Laura Alfaro, March 18, 2013, Case. “In February 2013, the G-20 finance ministers met in Moscow, Russia to discuss the rising anxieties over a potential international currency war. It was speculated that certain countries were purposely devaluing their currencies in order to improve their competitiveness in global markets. Emerging markets contended that the expansionary monetary policies of the major central banks, such as the US Federal Reserve, European Central Bank, and the Bank of England, were causing significant and detrimental spillover effects, such as currency appreciation, declining exports, and rising…”  May require purchase or user account. Link

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Deregulation, Misallocation, and Size: Evidence from India

Deregulation, Misallocation, and Size: Evidence from India. Laura Alfaro, December 2012, Paper. “This paper examines the impact of the deregulation of compulsory industrial licensing in India on firm size dynamics and reallocation of resources within industries. Following deregulation, resource misallocation declines, and the left-hand tail of the firm size distribution thickens significantly, suggesting increased entry by small firms. However, the dominance and growth of large incumbents remains unchallenged. Quantile regressions reveal that the distributional effects of deregulation on firm size…” Link verified August 21, 2014

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Foreign Direct Investment and Growth

 Foreign Direct Investment and Growth. Laura Alfaro, Matthew Johnson, 2012, Book Chapter. “This paper examines the evolution of the literature on the relationship between foreign direct investment (FDI) and growth in host countries, particularly developing countries. It provides a broad overview, with a focus on two elements that have recently become particularly important, (1) the role of complementary local conditions conducive to reaping the benefits of FDI (which relate to when FDI will generate growth) and (2) the mechanisms by which FDI creates positive externalities (which relate to how FDI generates growth)…” Link

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Surviving the Global Financial Crisis: Foreign Ownership and Establishment Performance

Surviving the Global Financial Crisis: Foreign Ownership and Establishment Performance. Laura Alfaro, July 2011, Paper. “We examine the differential response of establishments to the recent global financial crisis with particular emphasis on the role of foreign ownership. Using a worldwide establishment panel dataset, we investigate how multinational subsidiaries around the world responded to the crisis relative to local establishments. We find that first, multinational subsidiaries fared on average better than local counterfactuals with similar economic characteristics. Second, among multinational subsidiaries…” Link

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Does Foreign Direct Investment Promote Growth? Exploring the Role of Financial Markets on Linkages

Does Foreign Direct Investment Promote Growth? Exploring the Role of Financial Markets on Linkages. Laura Alfaro, March 2010, Paper. “Do multinational companies generate positive externalities for the host country? The evidence so far is mixed varying from beneficial to detrimental effects of FDI on growth, with many studies that find no effect. In order to provide an explanation for this empirical ambiguity, we formalize a mechanism that emphasizes the role of local financial markets in enabling foreign direct investment (FDI) to promote growth through backward linkages. Using realistic parameter values, we quantify the…” Link

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Trade Policy and Firm Boundaries

Trade Policy and Firm Boundaries. Laura Alfaro, January 2010, Paper. “We study how trade policy affects firms’ ownership structures. We first embed a model of vertical integration decisions into a standard perfectly-competitive international trade framework. In the model, integration decisions are driven by a trade-off between the pecuniary benefits of coordinating production decisions and the managers’ private benefits of operating in preferred waysThe price of output is a crucial determinant of this choice, since it affects the size of the pecuniary benefits: higher prices lead to more integration. Through its effect on product prices, trade policy…” Link

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Why Doesn’t Capital Flow from Rich to Poor Countries? An Empirical Investigation

Why Doesn’t Capital Flow from Rich to Poor Countries? An Empirical Investigation. Laura Alfaro, May 2008, Paper. “We examine the empirical role of different explanations for the lack of flows of capital from rich to poor countries—the ‘Lucas Paradox.’ The theoretical explanations include cross country differences in fundamentals that affect productivity and capital market imperfections. We show that during 1970−2000 low institutional quality is the leading explanation. Improving Peru’s institutional quality to Australia’s level implies a quadrupling of foreign investmentRecent studies emphasize the role of…” Link

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