The Comovement of Returns and Investment within the Multinational Firm [with Comments]

To what degree do increasing levels of financial integration among the world's major economies lead to changes in the synchronization of business cycles? In particular, what role could the dramatic increases in foreign direct investment play in explaining the comovement of aggregate measures of economic activity? This paper sheds light on these questions by providing facts about the scope of foreign direct investment in different countries and the correlations in investment and returns of

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