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Firms in the great global recession: The role of foreign ownership and financial dependence

  • Kolasa, Marcin
  • Rubaszek, Michal
  • Taglioni, Daria

This paper investigates the channels through which the global crisis of 2008-2009 spread to economic activity of an emerging, fast growing economy with sound macroeconomic fundamentals. On the basis of Polish firm-level data we find that a number of individual firm characteristics account for a heterogeneous response. In particular, foreign ownership appears to have provided a higher degree of resilience to the crisis. Our results indicate that this effect might be due to intra-group lending mechanisms supporting affiliates facing external credit constraints.

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Article provided by Elsevier in its journal Emerging Markets Review.

Volume (Year): 11 (2010)
Issue (Month): 4 (December)
Pages: 341-357

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Handle: RePEc:eee:ememar:v:11:y:2010:i:4:p:341-357
Contact details of provider: Web page: http://www.elsevier.com/locate/inca/620356

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