Alfaro, LauraChen, Maggie Xiaoyang2012-03-192012-03-192012-01-01https://hdl.handle.net/10986/3231This paper examines how different establishments performed during the recent global financial crisis, focusing on the role of foreign ownership. The paper investigates how foreign ownership affected establishments' responses to negative economic shocks, using a cross-country panel dataset with detailed information on operation, location and industry for more than 12 million establishments from 2005-2008. The evidence shows that multinational subsidiaries on average fared better than local counterfactuals with similar economic characteristics. Among multinational subsidiaries, establishments with stronger production and financial linkages with parent companies showed greater resilience. Finally, in contrast to the crisis period, the impact of foreign ownership and linkages on an establishment's performance was insignificant in non-crisis years.CC BY 3.0 IGOAFFILIATED ORGANIZATIONSAMERICAN ECONOMIC ASSOCIATIONAMERICAN ECONOMIC REVIEWASSETSBANK CREDITBANKING SYSTEMBANKRUPTCYBENCHMARKBENCHMARK DATABUSINESS CYCLECAPITAL FLOWSCAPITAL INTENSITYCAPITAL MARKETSCOUNTRY DUMMIESCREDIT RATINGSDEBTDEPENDENTDEVELOPMENT ECONOMICSDEVELOPMENT POLICYDIRECT FOREIGN INVESTMENTDOMESTIC DEMANDECONOMIC CRISESECONOMIC CRISISECONOMIC DOWNTURNECONOMIC DOWNTURNSECONOMIC EXPANSIONECONOMIC GROWTHECONOMIC INTERDEPENDENCEECONOMIC PERFORMANCEECONOMIC RESEARCHECONOMIC SHOCKSECONOMIC VOLATILITYEMERGING ECONOMIESEXPORTSEXPOSUREFINANCIAL CONSTRAINTSFINANCIAL CRISESFINANCIAL CRISISFINANCIAL DEVELOPMENTFINANCIAL MARKETSFINANCING CONSTRAINTSFOREIGN CURRENCYFOREIGN CURRENCY DEBTFOREIGN DIRECT INVESTMENTFOREIGN INVESTMENTFOREIGN INVESTMENTSFOREIGN OWNERSFOREIGN OWNERSHIPFUTURE RESEARCHGDPGLOBAL CAPITALGLOBAL CAPITAL FLOWSGROWTH RATESHOME COUNTRIESHOME MORTGAGEHUMAN CAPITALINDUSTRIAL COUNTRIESINPUT-OUTPUTINSOLVENTINSOLVENT FIRMSINSTITUTIONAL INVESTORINTERNATIONAL TRADELENDERSLIQUIDITYLIQUIDITY CONSTRAINTSLIQUIDITY CRUNCHMANUFACTURING INDUSTRIESMANUFACTURING INDUSTRYMARKET SHAREMORTGAGEMORTGAGE INVESTMENTMULTINATIONAL CORPORATIONMULTINATIONAL CORPORATIONSMULTINATIONAL FIRMSOWNERSHIP INFORMATIONPARENT COMPANIESPOLITICAL ECONOMYPRODUCTIVITYPROTECTIONISMPUBLIC REGISTRIESREVIEW OF ECONOMICSSALES GROWTHSHARE OF CAPITALSTANDARD ERRORSSTOCK PRICESTAXTECHNOLOGY TRANSFERTOTAL OUTPUTTOTAL REVENUETRADE LIBERALIZATIONUNEMPLOYMENTUNEMPLOYMENT RATEUNEMPLOYMENT RATESVERTICAL INTEGRATIONVOLATILITYWORLD ECONOMYWORLD TRADEWorld Bank10.1596/1813-9450-5946