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
Date Written: July 1, 2010
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: Suggested Citation