• Mihir Desai


Financial Constraints and Growth: Multinational and Local Firm Responses to Currency Crises. Mihir A. Desai, C. Fritz Foley, November 2008. "This paper examines how financial constraints and product market exposures determine the response of multinational and local firms to sharp depreciations. U.S. multinational affiliates increase sales, assets, and investment significantly more than local firms during, and subsequent to, depreciations. Differing product market exposures do not explain these differences in performance. Instead, a differential ability to circumvent financial constraints is a significant determinant..." Link