Score contribution per author:
α: calibrated so average coauthorship-adjusted count equals average raw count
Using offshore affiliates as financing vehicles by emerging market corporates (“offshore issuance”) has become widespread post-crisis. In this study, we investigate the extent to which offshore bond issuance has become a transmission channel of global financial conditions to emerging market economies. Using panel vector auto-regression methods, we find that offshore bond issuance has become more important than onshore bond issuance as a transmission channel of global liquidity after 2010. We also find that offshore bond issuance plays a significant role in countries with strengthened capital account restrictions, but not in countries with weakened capital account restrictions.