Essays on International Finance, Culture, and Technology

Kennedy, Austin

Graduate Thesis Or Dissertation

Essays on International Finance, Culture, and Technology Public Deposited

Analytics

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Citeable URL: https://scholar.colorado.edu/concern/graduate_thesis_or_dissertations/n296x089m

Abstract

This dissertation contains three chapters analyzing the interaction between culture, technology, and international finance in different contexts. The first chapter, “Fiscal Spillovers through Informal Financial Channels”, analyzes the effect of the US fiscal response to the COVID-19 pandemic, particularly the disbursement of stimulus checks, on cryptocurrency outflows from the US. This analysis provides new evidence of “fiscal spillovers”, whereby fiscal policy in one country is transmitted to other countries via international financial channels. Using a difference-in-differences models, I find that cryptocurrency outflows from the US increased by as much as 11% due to the stimulus checks, with increases of 17% and 16% to middle- and high-income countries, respectively. The second chapter, “Enlightenment Ideals and Beliefs in Progress in the Run-up to the Industrial Revolution: A Textual Analysis” studies the evolution of language in Britain leading up to the Industrial Revolution, using a textual analysis of 173,031 works printed in England between 1500 and 1900. We find that, beginning in the 17th century, the language of science and religion became distinct, scientific works became more progress-oriented, and volumes related to industry became more progress-oriented. This provides evidence that cultural change, especially concerning pragmatic views towards science as a vessel for progress, played a significant role in the Industrial Revolution. Finally, the third chapter, “Does Business Culture Travel? The Case of Worker Safety”, analyzes the effect of foreign direct investment (FDI) on workplace safety outcomes in the US. This analysis indicates that for less safe industries, FDI leads to safer workplace conditions, and for safer industries, FDI tends to worsen workplace safety outcomes. This suggests that firms may benefit from foreign ownership, but there may also be additional competitive pressures introduced by FDI.

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