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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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Presumptive income taxes in the form of a tax on turnover for SMEs are pervasive as a way to reduce the costs of compliance and administration. We analyze a model where entrepreneurs allocate labor to the formal and informal sectors. Formal sector income is subjected either to a corporate income tax or a tax on turnover, depending on whether their turnover exceeds a threshold. We characterize the private sector equilibrium for any given configuration of tax policy parameters (corporate income tax rate, turnover tax rate, and threshold). Given private behavior, social welfare is optimized. We interpret the first-order conditions for welfare maximization to identify the key margins and then simulate a calibrated version of the model.

Taxation. --- Duties --- Fee system (Taxation) --- Tax policy --- Tax reform --- Taxation, Incidence of --- Taxes --- Finance, Public --- Revenue --- Public Finance --- Taxation --- Corporate Taxation --- Optimization Techniques --- Programming Models --- Dynamic Analysis --- Efficiency --- Optimal Taxation --- Business Taxes and Subsidies --- Formal and Informal Sectors --- Shadow Economy --- Institutional Arrangements --- Taxation, Subsidies, and Revenue: General --- Tax Evasion and Avoidance --- Public finance & taxation --- Sales tax, tariffs & customs duties --- Corporate & business tax --- Sales tax --- Corporate income tax --- Presumptive tax --- Compliance costs --- Revenue administration --- Spendings tax --- Corporations --- Income tax --- Tax administration and procedure --- France

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This Technical Assistance (TA) report focuses on four key work areas which may lead to improvement of Government Finance Statistics (GFS) for fiscal analysis, support policy making decisions in Zambia, and improve African Department surveillance. The mission found out that the Coordinating Committee, recommended in the previous TA mission, was not yet established. The mission reviewed progress on the legal and institutional arrangements supporting the compilation of GFS as a follow up from recommendations of the previous GFS TA mission and found that the legislation reforms were on track, especially regarding the Public Finance Act. The report also found that Central Statistical Office (CSO) is working on the revision of the Statistics Act to follow the new strategy for National Development of Statistics. For sustainability and consistency purposes, the mission recommended that the CSO staff produce a GFS manual for compilation and dissemination of GFS data.

Monetary policy --- Monetary management --- Economic policy --- Currency boards --- Money supply --- Accounting --- Labor --- Statistics --- Civics and Citizenship --- Data Collection and Data Estimation Methodology --- Computer Programs: Other --- Education: General --- Formal and Informal Sectors --- Shadow Economy --- Institutional Arrangements --- Nonwage Labor Costs and Benefits --- Private Pensions --- Public Administration --- Public Sector Accounting and Audits --- Econometrics & economic statistics --- Education --- Civil service & public sector --- Labour --- income economics --- Financial reporting, financial statements --- Government finance statistics --- Civil society organizations --- Non-wage benefits --- Financial statements --- Economic and financial statistics --- Economic sectors --- Public financial management (PFM) --- Finance --- Civil society --- Employee fringe benefits --- Finance, Public --- Zambia

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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