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  • Graciela Laura Kaminsky, Sergio L. Schmukler, +4 authors Eung Ju Kim
  • 1999
In the chaotic financial environment of Asia in 1997-1998, daily changes in stock prices of about 10 percent became commonplace. This paper analyzes what type of news moves the markets in those days of market jitters. We find that movements are triggered by local and neighbor-country news, with news about agreements with international organizations and(More)
In this paper, we empirically investigate how the ideology of the government in power a®ects trade policy. The prediction of a partisan, ideology-based model (within a two-sector, two-factor Heckscher-Ohlin framework) is that left-wing governments will adopt more protectionist trade policies in capital rich countries, but adopt more pro-trade policies in(More)
This paper analyzes the impact of corruption on bilateral trade flows, highlighting the dual role of corruption in terms of extortion and evasion. While corrupt customs officials in the importing country may extort bribes from exporters they may also allow exporters to evade tariff barriers. The paper sets up a theoretical model which shows that the effect(More)
We use monthly stock market indices for 58 countries to construct pairwise correlations of returns and to explain these correlations with differences in the industrial structure across these countries. We find that countries with similar industries have stock markets that exhibit high correlation of returns. The results are robust to the inclusion of other(More)
The dramatic impact of the current crisis on performance of businesses across sectors and economies have been headlining the business press for the past many months. Extant reconciliations of these patterns in the popular press rely on ad-hoc reasoning. Using historical data on currency crisis episodes across the world, we examine how consumers respond to a(More)
I exploit the passage of the UK Bribery Act 2010 as an exogenous shock to UK firms' cost of doing business in corrupt regions to study whether the ability to use bribes creates firm value. First, I find that UK firms operating in high-corruption regions of the world display a drop in firm value after the Act's passage. Foreign firms subject to the Act(More)
  • James A. Costantini, Ilian Mihov, +4 authors Pushan Dutt
  • 2009
I develop a model for how heterogeneous firms within an industry respond to a financial shock that temporarily raises the cost of external finance, relative to internally generated funds. The model incorporates three elements that lead to substantial variation across firms in policy response to the shock and affect the time path of aggregate outcomes:(More)
I exploit the passage of the UK Bribery Act 2010 as a shock to UK firms' cost of doing business in order to study the effect of bribes on firm value. Around the Act's passage, UK firms operating in high-corruption countries display a drop in value. At the same time, non-UK industry peers competing directly with UK firms in corrupt countries exhibit an(More)
This paper looks at the role of corruption as a barrier to imports, highlighting the interaction with nominal tariffs. It shows that the effect of corruption is non-linear and must take into account the level of nominal tariffs. In particular, we show that, while corruption taxes trade in an environment of low tariffs, it may create trade enhancing effects,(More)
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