Explaining ASEAN-3â€™s Investment Puzzle A Tale of Two Sectors

The prolonged investment decline in post-Asian crisis emerging Asia, in contrast to the swift recovery of economic growth, has remained a puzzle. This paper shows that the post-crisis investment recession has been mainly concentrated in the nontradable sector, and hypothesizes that the slowdown is because firms operating in that sector are financially constrained. Empirical results based on macro and firm-level data from Indonesia, Malaysia, and Thailand (ASEAN-3) support this hypothesis.

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Year of publication:	2013-01-14
Authors:	Zhou, Yong Sarah
Institutions:	International Monetary Fund (IMF)
Subject:	Credit \| Indonesia \| Malaysia \| Thailand \| Asia \| Investment \| Emerging markets \| Association of Southeast Asian Nations \| Cross country analysis \| Bank credit \| private investment \| Tobin’ \| s Q \| corporate investment \| asian crisis \| capital markets \| pre-crisis \| financial crisis \| private capital flows \| capital formation \| credit constraint \| cost of capital \| international capital markets \| asian financial crisis \| capital stock \| capital adequacy \| gross capital formation \| financial crises \| post-crisis investment \| capital goods \| foreign capital \| access to international capital \| recession \| credit boom \| access to international capital markets \| crisis countries \| capital ratio \| systemic financial crises \| capital market imperfections \| working capital \| external capital \| credit market \| crisis economies \| financial liberalization \| crisis episodes \| capital adequacy ratios \| credit market imperfections \| credit booms \| swift \| real effective exchange rate

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Extent:	application/pdf
Series:	IMF Working Papers.
Type of publication:	Book / Working Paper
Notes:	The text is part of a series IMF Working Papers Number 13/13 2 pages long
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10011142140