On the 2005 Foote Lecturer:
Dr. Linda Tesar is currently a Professor of Economics in the Department of Economics at the University of Michigan. She received her Ph.D. from the University of Rochester in 1990 and spent seven years on the faculty at the University of California in Santa Barbara. She joined the faculty at Michigan in 1997. She is a Research Associate at the National Bureau of Economic Research and has been a visitor in the Research Departments of the International Monetary Fund, the Board of Governors of the Federal Reserve System and the Federal Reserve Bank in Minneapolis. She has also served on the Academic Advisory Council to the Federal Reserve Bank of Chicago.
Dr. Tesar’s research focuses on issues in international finance, with particular interests in the international transmission of business cycles and fiscal policy, the benefits of global risk sharing, capital flows to emerging markets, international tax competition and the impact of exchange rate exposure. Results of her research have been published in the American Economic Review, the Journal of International Economics, the Review of Economic Dynamics and the Journal of Monetary Economics.
On her 2005 Foote Lecture topic, Dr. Linda notes that, with macro theories, there generally has been difficulty explaining the direction, volume, and composition of global capital flows. In this Lecture, whose focus is on capital investments in emerging markets, she will survey patterns of
international capital movements, and will discuss how those patterns have shifted over time. “While most types of international investment retreated from emerging markets following the string of financial crises that occurred in the mid to late 1990s, foreign direct investment in those countries persisted, and even expanded. I will argue that microevidence from cross-border acquisitions of emerging market firms—which accounts for most of the FDI flow into emerging markets— provides important clues about the factors that drive international capital flow in today’s global environment.”