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This paper studies whether FDI firms employ more workers than domestic firms for each dollar of assets. Using the Orbis database and its ownership structure information, we show that, in most economies, domestic firms tend to employ more workers per asset than FDI firms. The result remains robust across individual industries in the case study of the United Kingdom. The analysis of the switchers (ownership changes from domestic to foreign or vice versa) suggests that ownership changes do not have an immediate impact on the employment per asset. This result suggests that different patterns of employment per asset seem to come from technological differences rather than from different ownership structures.

United Kingdom --- Exports and Imports --- Financial Risk Management --- Labor --- Public Finance --- International Investment --- Long-term Capital Movements --- Employment --- Unemployment --- Wages --- Intergenerational Income Distribution --- Aggregate Human Capital --- Aggregate Labor Productivity --- National Government Expenditures and Related Policies: General --- International Financial Markets --- Finance --- Labour --- income economics --- Public finance & taxation --- Foreign direct investment --- Public expenditure review --- Special purpose vehicle --- Balance of payments --- Expenditure --- Asset and liability management --- Investments, Foreign --- Economic theory --- Expenditures, Public --- Asset-liability management

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This paper provides new empirical evidence of the impact of an unanticipated change in public debt on real GDP. Using public debt forecast errors, we identify exogenous changes in public debt to assess the impact of a change in the debt to GDP ratio on real GDP. By analyzing data on gross public debt for 178 countries over 1995-2020, we find that the impact of an unanticipated increase in public debt on the real GDP level is generally negative and varies depending on other fundamental characteristics. Specifically, an unanticipated increase in the public debt to GDP ratio hurts real GDP level for countries that have (i) a high initial debt level or (ii) a rising debt trajectory over the five preceding years. On the contrary, an unanticipated increase in public debt boosts real GDP for countries that have (iii) a low-income level or (iv) completed the HIPC debt relief initiative.

Mongolia --- Macroeconomics --- Economics: General --- Public Finance --- Financial Risk Management --- Exports and Imports --- International Factor Movements and International Business: General --- International Investment --- Long-term Capital Movements --- International Finance: General --- International Lending and Debt Problems --- Fiscal Policy --- Economic Growth and Aggregate Productivity: General --- Debt --- Debt Management --- Sovereign Debt --- Economic & financial crises & disasters --- Economics of specific sectors --- Public finance & taxation --- Finance --- International economics --- Public debt --- Debt relief --- Asset and liability management --- External debt --- Currency crises --- Informal sector --- Economics --- Debts, Public --- Debts, External

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The paper evaluates the key drivers of fiscal crises in a sample of countries from all three income groups—advanced, emerging, and low-income countries, using fiscal crisis data recently developed by the IMF’s Fiscal Affairs Department. The empirical study focuses on three questions: (1) How does the composition of debtholders (domestic vs. foreign, resident vs. non-resident, or official vs. non-official) affect the probability of a fiscal crisis, after controlling for the level of public debt and other relevant variables?; (2) How does the development and size of the domestic financial sector affect the probability of a fiscal crisis?; and (3) How do changes in the debt level affect the probability of a fiscal crisis, for given compositions of the sovereign debt investor base and different levels of development and size of domestic financial markets? Our findings confirm the benefits of financial development, the danger of heavy reliance on a non-resident investor base, and also that emerging market economies have a lower debt carrying capacity compared to the full sample.

Macroeconomics --- Economics: General --- Public Finance --- Finance: General --- Financial Risk Management --- Industries: Financial Services --- Financial Markets and the Macroeconomy --- International Factor Movements and International Business: General --- International Investment --- Long-term Capital Movements --- International Finance: General --- International Lending and Debt Problems --- Financial Aspects of Economic Integration --- Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook: General --- Debt --- Debt Management --- Sovereign Debt --- General Financial Markets: General (includes Measurement and Data) --- Financial Crises --- Pension Funds --- Non-bank Financial Institutions --- Financial Instruments --- Institutional Investors --- Economic & financial crises & disasters --- Economics of specific sectors --- Public finance & taxation --- Finance --- Public debt --- Financial sector development --- Financial markets --- Capital markets --- Financial crises --- Nonbank financial institutions --- Financial institutions --- Currency crises --- Informal sector --- Economics --- Debts, Public --- Financial services industry --- Capital market

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The paper evaluates the key drivers of fiscal crises in a sample of countries from all three income groups—advanced, emerging, and low-income countries, using fiscal crisis data recently developed by the IMF’s Fiscal Affairs Department. The empirical study focuses on three questions: (1) How does the composition of debtholders (domestic vs. foreign, resident vs. non-resident, or official vs. non-official) affect the probability of a fiscal crisis, after controlling for the level of public debt and other relevant variables?; (2) How does the development and size of the domestic financial sector affect the probability of a fiscal crisis?; and (3) How do changes in the debt level affect the probability of a fiscal crisis, for given compositions of the sovereign debt investor base and different levels of development and size of domestic financial markets? Our findings confirm the benefits of financial development, the danger of heavy reliance on a non-resident investor base, and also that emerging market economies have a lower debt carrying capacity compared to the full sample.

Macroeconomics --- Economics: General --- Public Finance --- Finance: General --- Financial Risk Management --- Industries: Financial Services --- Financial Markets and the Macroeconomy --- International Factor Movements and International Business: General --- International Investment --- Long-term Capital Movements --- International Finance: General --- International Lending and Debt Problems --- Financial Aspects of Economic Integration --- Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook: General --- Debt --- Debt Management --- Sovereign Debt --- General Financial Markets: General (includes Measurement and Data) --- Financial Crises --- Pension Funds --- Non-bank Financial Institutions --- Financial Instruments --- Institutional Investors --- Economic & financial crises & disasters --- Economics of specific sectors --- Public finance & taxation --- Finance --- Public debt --- Financial sector development --- Financial markets --- Capital markets --- Financial crises --- Nonbank financial institutions --- Financial institutions --- Currency crises --- Informal sector --- Economics --- Debts, Public --- Financial services industry --- Capital market