International Capital Flows


Coordinator: Prof. Rahul Mukherjee (CFD) with Christian Proebsting (EPFL)

The aim of this research project is to get at a precise quantification of the welfare effects of globalization by analyzing the interaction of two key elements – technology and financing – in the market for domestic and cross-border mergers and acquisitions (M&As). The M&A market is especially suitable in this regard: Both foreign and domestic firms compete for ownership of other firms in this market, leading to massive reallocation of real, technological and financial factors of production across and within the boundaries of firms and countries. In particular, this project seeks to combine rigorous theoretical models with rich new firm-level data to explore the dynamics of this reallocation, and hence understand the sources of welfare gains – real and technological versus financial – from globalization.

Research Assistant: Alexandre Lauwers

Funding: SNSF project grant No. 172690 for the project entitled "Financial Globalization and Real Reallocation in the Market for Corporate Control"


Peer-reviewed Articles

Taxes and International Risk Sharing

Brendan Epstein, Rahul Mukherjee & Shanthi Ramnath, Journal of International Economics, Vol. 102, pp. 310–326, 2016


Fire-Sale FDI or Business as Usual?

Ron Alquist, Rahul Mukherjee & Linda Tesar, Journal of International Economics, Vol. 98, pp. 93–113, 2016


Institutions, Corporate Governance and Capital Flows

Rahul Mukherjee, Journal of International Economics, Vol. 96 (2), pp. 338–359, 2015


Working Papers



Liquidity-Driven FDI

Ron Alquist, Rahul Mukherjee & Linda Tesar, University of Michigan RSIE Discussion Paper No. 626, 2015


Survival of the Fittest: Corporate Control and the Cleansing Effect of Financial Crises

Rahul Mukherjee & Christian Pröbsting, IHEID WP No. 20-2015, 2015

Media Coverage

Liquidity-driven Foreign Direct Investment

Ron Alquist, Rahul Mukherjee & Linda Tesar, Vox column, 22 December 2014


Fire-sale FDI: All Smoke and No Fire?

Ron Alquist, Rahul Mukherjee & Linda Tesar, Vox column, 26 March 2013