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This paper assesses whether cross-border M&A decisions exhibit network effects. We estimate exponential random graph models (ERGM) and temporal exponential random graph models (TERGM) to evaluate the determinants of cross-country M&A investments at the sectoral level. The results show that transitivity matters: a country is more likely to invest in a new destination if one of its existing partners has already made some investments there. In line with the literature on export platforms and informational barriers, we find a sizable impact of third country effects on the creation of new investments. This effect is sizable and larger than some of the more traditional M&A determinants, such as trade openness.

Exports and Imports --- Industries: Manufacturing --- Civics and Citizenship --- Neoclassical Models of Trade --- Empirical Studies of Trade --- Industry Studies: Manufacturing: General --- Trade: General --- Formal and Informal Sectors --- Shadow Economy --- Institutional Arrangements --- Network Formation and Analysis: Theory --- International economics --- Manufacturing industries --- Civil service & public sector --- Comparative advantage --- Trade balance --- Manufacturing --- Exports --- Civil society --- International trade --- Economic sectors --- Balance of trade --- United States

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This paper is the first attempt to directly explore the long-run nonlinear relationship between the shadow economy and level of development. Using a dataset of 158 countries over the period from 1996 to 2015, our results reveal a robust U-shaped relationship between the shadow economy size and GDP per capita. Our results imply that the shadow economy tends to increase when economic development surpasses a given threshold or at least does not disappear. Our findings suggest that special attention should be given to the country’s level of development when designing policies to tackle issues related to the shadow economy.

Inflation --- Macroeconomics --- Taxation --- Economics: General --- Informal Economy --- Underground Econom --- Tax Evasion and Avoidance --- Formal and Informal Sectors --- Shadow Economy --- Institutional Arrangements --- Institutions and Growth --- Education and Economic Development --- Taxation, Subsidies, and Revenue: General --- Education: General --- Price Level --- Deflation --- Labor Economics: General --- Economics of specific sectors --- Public finance & taxation --- Education --- Labour --- income economics --- Informal economy --- Tax incidence --- Labor --- Economic sectors --- Tax policy --- Prices --- Informal sector --- Economics --- Tax administration and procedure --- Labor economics --- United States --- Income economics

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This paper examines the impact of e-invoicing on firm tax compliance and performance using administrative tax data and quasi-experimental variation in the rollout of VAT electronic invoicing in Peru. We find that e-invoicing increases reported firm sales, purchases and value-added by over 5 percent in the first year after adoption. The impact is concentrated among smaller firms and sectors with higher rates of non-compliance, suggesting that e-invoicing enhances compliance by lowering compliance costs and strengthening deterrence. The reform’s positive effects on tax collection are hindered by shortcomings in the VAT refund mechanism in Peru, suggesting that digital tools such as e-invoicing should be complemented by other reforms to improve revenue mobilization.

Investments: Stocks --- Money and Monetary Policy --- Taxation --- Firm Behavior: Empirical Analysis --- Business Taxes and Subsidies --- Tax Evasion and Avoidance --- Firm Performance: Size, Diversification, and Scope --- Formal and Informal Sectors --- Shadow Economy --- Institutional Arrangements --- Taxation, Subsidies, and Revenue: General --- Monetary Policy, Central Banking, and the Supply of Money and Credit: General --- Pension Funds --- Non-bank Financial Institutions --- Financial Instruments --- Institutional Investors --- Public finance & taxation --- Monetary economics --- Investment & securities --- Value-added tax --- Credit --- Tax administration core functions --- Tax return filing compliance --- Stocks --- Taxes --- Money --- Revenue administration --- Financial institutions --- Spendings tax --- Tax administration and procedure --- Peru

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In sub-Saharan Africa women work relatively more in the informal sector than men. Many factors could explain this difference, including women’s lower education levels, legal barriers, social norms and demographic characteristics. Cross-country comparisons indicate strong associations between gender gaps and higher female informality. This paper uses microdata from Senegal to assess the probability of a worker being informal, and our main findings are: (i) in urban areas, being a woman increases this probability by 8.5 percent; (ii) education is usually more relevant for women; (iii) having kids reduces men’s probability of being informal but increases women’s.

Informal sector (Economics) --- Hidden economy --- Parallel economy --- Second economy --- Shadow economy --- Subterranean economy --- Underground economy --- Artisans --- Economics --- Small business --- Labor --- Macroeconomics --- Women''s Studies' --- Gender Studies --- Employment --- Unemployment --- Wages --- Intergenerational Income Distribution --- Aggregate Human Capital --- Aggregate Labor Productivity --- Informal Economy --- Underground Econom --- Economics of Gender --- Non-labor Discrimination --- Economic History: Labor and Consumers, Demography, Education, Health, Welfare, Income and Wealth: Africa --- Oceania --- Formal and Informal Sectors --- Shadow Economy --- Institutional Arrangements --- Education: General --- Labor Economics: General --- Gender studies --- women & girls --- Education --- Social discrimination & equal treatment --- Labour --- income economics --- Women --- Gender inequality --- Informal employment --- Gender --- Sex discrimination --- Economic theory --- Labor economics --- Senegal --- Income economics --- Women & girls --- Women's Studies

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Using business registry data from China, we show that internal capital markets in business groups can propagate corporate shareholders’ credit supply shocks to their subsidiaries. An average of 16.7% local bank credit growth where corporate shareholders are located would increase subsidiaries investment by 1% of their tangible fixed asset value, which accounts for 71% (7%) of the median (average) investment rate among these firms. We argue that equity exchanges is one channel through which corporate shareholders transmit bank credit supply shocks to the subsidiaries and provide empirical evidence to support the channel.

Capital market. --- Capital markets --- Market, Capital --- Finance --- Financial institutions --- Loans --- Money market --- Securities --- Crowding out (Economics) --- Efficient market theory --- Finance: General --- Investments: Stocks --- Money and Monetary Policy --- Economic Theory --- Financial Risk Management --- Formal and Informal Sectors --- Shadow Economy --- Institutional Arrangements --- Organization of Production --- Monetary Policy, Central Banking, and the Supply of Money and Credit: General --- Agriculture: Aggregate Supply and Demand Analysis --- Prices --- Pension Funds --- Non-bank Financial Institutions --- Financial Instruments --- Institutional Investors --- General Financial Markets: General (includes Measurement and Data) --- International Financial Markets --- Monetary economics --- Economic theory & philosophy --- Investment & securities --- Credit --- Supply shocks --- Bank credit --- Stocks --- Money --- Economic theory --- Asset valuation --- Asset and liability management --- Supply and demand --- Capital market --- Asset-liability management --- China, People's Republic of