Firms in the Great Global Recession: The Role of Foreign Ownership and Financial Dependence

National Bank of Poland Working Paper No. 77

28 Pages Posted: 23 Jan 2011 Last revised: 8 Feb 2011

See all articles by Marcin Kolasa

Marcin Kolasa

National Bank of Poland; Warsaw School of Economics (SGH)

Michał Rubaszek

National Bank of Poland; Warsaw School of Economics (SGH)

Daria Taglioni

European Central Bank (ECB) - Directorate General Economics

Date Written: July 1, 2010

Abstract

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.

Keywords: global crisis, firm-level data, foreign ownership, financial constraints

JEL Classification: C23, E44, F23, G32

Suggested Citation

Kolasa, Marcin and Rubaszek, Michal and Taglioni, Daria, Firms in the Great Global Recession: The Role of Foreign Ownership and Financial Dependence (July 1, 2010). National Bank of Poland Working Paper No. 77. Available at SSRN: https://ssrn.com/abstract=1744005 or http://dx.doi.org/10.2139/ssrn.1744005

Marcin Kolasa (Contact Author)

National Bank of Poland ( email )

00-919 Warsaw
Poland

Warsaw School of Economics (SGH) ( email )

aleja Niepodleglosci 162
PL-Warsaw, 02-554
Poland

Michal Rubaszek

National Bank of Poland ( email )

00-919 Warsaw
Poland

Warsaw School of Economics (SGH) ( email )

aleja Niepodleglosci 162
PL-Warsaw, 02-554
Poland

Daria Taglioni

European Central Bank (ECB) - Directorate General Economics ( email )

Kaiserstrasse 29
D-60311 Frankfurt am Main
Germany

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