Financial Crises, Financial Dependence, and Industry Growth
The authors investigate the link between financial crises and industry growth. They analyze data from 19 industrial and developing countries that have experienced financial crises during the past 30 years to investigate how financial crises affect...
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| Format: | Policy Research Working Paper |
| Language: | English en_US |
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World Bank, Washington, D.C.
2013
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| Online Access: | http://documents.worldbank.org/curated/en/2002/06/1943366/financial-crises-financial-dependence-industry-growth http://hdl.handle.net/10986/14285 |
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okr-10986-142852021-04-23T14:03:20Z Financial Crises, Financial Dependence, and Industry Growth Laeven, Luc Klingebiel, Daniela Kroszner, Randy ADVERSE CONSEQUENCES ADVERSE EFFECTS BALANCE SHEET BALANCE SHEETS BANK LENDING BANKING CRISES BANKING CRISIS BONDS BUDGET CONSTRAINTS CAPITAL EXPENDITURES CORPORATE SECTOR CREDIT CONSTRAINTS CREDIT RATIONING CRISES RESOLUTION DEPENDENT VARIABLE DEPOSIT GUARANTEES DEREGULATION DEVELOPED COUNTRIES DEVELOPING COUNTRIES DEVELOPMENT ECONOMICS DEVELOPMENT INDICATORS ECONOMIC ACTIVITY ECONOMIC GROWTH ECONOMIC LITERATURE ECONOMIC RESEARCH EMERGING MARKETS EMPIRICAL EVIDENCE EMPIRICAL LITERATURE EMPIRICAL WORK EXCESS LIQUIDITY FINANCIAL CRISES FINANCIAL CRISIS FINANCIAL DATA FINANCIAL DEPTH FINANCIAL DEVELOPMENT FINANCIAL INSTITUTIONS FINANCIAL MARKETS FINANCIAL RESTRUCTURING FINANCIAL SECTOR FINANCIAL SERVICES FINANCIAL STRUCTURE FINANCIAL SYSTEMS GDP GROWTH PATTERN GROWTH RATE GROWTH RATES GROWTH REGRESSIONS HARD BUDGET CONSTRAINTS INCOME INDUSTRIAL SECTOR INFLATION LEGAL SYSTEMS LIQUIDITY M2 MONETARY POLICY NEGATIVE EFFECT NEGATIVE IMPACT PER CAPITA GROWTH POLICY RESEARCH POLITICAL ECONOMY REAL GDP REAL SECTOR REGULATORY FORBEARANCE SECTOR ACTIVITY STANDARD DEVIATION TOTAL FACTOR PRODUCTIVITY TOTAL FACTOR PRODUCTIVITY GROWTH TRANSMISSION OF MONETARY POLICY VALUE ADDED WORKING CAPITAL FINANCIAL CRISES EXTERNAL FINANCE FINANCIAL SYSTEMS FINANCE INDUSTRY FINANCE GROWTH RATE The authors investigate the link between financial crises and industry growth. They analyze data from 19 industrial and developing countries that have experienced financial crises during the past 30 years to investigate how financial crises affect sectors dependent on external sources of finance. Specifically, the authors examine whether the impact of a financial crisis on externally dependent sectors varies with the depth of the financial system. They find that sectors highly dependent on external finance tend to experience a greater contraction of value added during a crisis in deeper financial systems than in countries with shallower financial systems. They hypothesize that the deepening of the financial system allows sectors dependent on external finance to obtain relatively more external funding in normal periods, so a crisis in such countries would have a disproportionately negative effect on externally dependent sectors. In contrast, since externally dependent firms tend to obtain relatively less external financing in shallower financial systems (and hence have relatively lower growth rates in such countries during normal times), a crisis in such countries has less of a disproportionately negative effect on the growth of externally dependent sectors. 2013-06-28T12:53:27Z 2013-06-28T12:53:27Z 2002-06-30 http://documents.worldbank.org/curated/en/2002/06/1943366/financial-crises-financial-dependence-industry-growth http://hdl.handle.net/10986/14285 English en_US Policy Research Working Paper;No.2855 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, D.C. Publications & Research :: Policy Research Working Paper Publications & Research |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English en_US |
| topic |
ADVERSE CONSEQUENCES ADVERSE EFFECTS BALANCE SHEET BALANCE SHEETS BANK LENDING BANKING CRISES BANKING CRISIS BONDS BUDGET CONSTRAINTS CAPITAL EXPENDITURES CORPORATE SECTOR CREDIT CONSTRAINTS CREDIT RATIONING CRISES RESOLUTION DEPENDENT VARIABLE DEPOSIT GUARANTEES DEREGULATION DEVELOPED COUNTRIES DEVELOPING COUNTRIES DEVELOPMENT ECONOMICS DEVELOPMENT INDICATORS ECONOMIC ACTIVITY ECONOMIC GROWTH ECONOMIC LITERATURE ECONOMIC RESEARCH EMERGING MARKETS EMPIRICAL EVIDENCE EMPIRICAL LITERATURE EMPIRICAL WORK EXCESS LIQUIDITY FINANCIAL CRISES FINANCIAL CRISIS FINANCIAL DATA FINANCIAL DEPTH FINANCIAL DEVELOPMENT FINANCIAL INSTITUTIONS FINANCIAL MARKETS FINANCIAL RESTRUCTURING FINANCIAL SECTOR FINANCIAL SERVICES FINANCIAL STRUCTURE FINANCIAL SYSTEMS GDP GROWTH PATTERN GROWTH RATE GROWTH RATES GROWTH REGRESSIONS HARD BUDGET CONSTRAINTS INCOME INDUSTRIAL SECTOR INFLATION LEGAL SYSTEMS LIQUIDITY M2 MONETARY POLICY NEGATIVE EFFECT NEGATIVE IMPACT PER CAPITA GROWTH POLICY RESEARCH POLITICAL ECONOMY REAL GDP REAL SECTOR REGULATORY FORBEARANCE SECTOR ACTIVITY STANDARD DEVIATION TOTAL FACTOR PRODUCTIVITY TOTAL FACTOR PRODUCTIVITY GROWTH TRANSMISSION OF MONETARY POLICY VALUE ADDED WORKING CAPITAL FINANCIAL CRISES EXTERNAL FINANCE FINANCIAL SYSTEMS FINANCE INDUSTRY FINANCE GROWTH RATE |
| spellingShingle |
ADVERSE CONSEQUENCES ADVERSE EFFECTS BALANCE SHEET BALANCE SHEETS BANK LENDING BANKING CRISES BANKING CRISIS BONDS BUDGET CONSTRAINTS CAPITAL EXPENDITURES CORPORATE SECTOR CREDIT CONSTRAINTS CREDIT RATIONING CRISES RESOLUTION DEPENDENT VARIABLE DEPOSIT GUARANTEES DEREGULATION DEVELOPED COUNTRIES DEVELOPING COUNTRIES DEVELOPMENT ECONOMICS DEVELOPMENT INDICATORS ECONOMIC ACTIVITY ECONOMIC GROWTH ECONOMIC LITERATURE ECONOMIC RESEARCH EMERGING MARKETS EMPIRICAL EVIDENCE EMPIRICAL LITERATURE EMPIRICAL WORK EXCESS LIQUIDITY FINANCIAL CRISES FINANCIAL CRISIS FINANCIAL DATA FINANCIAL DEPTH FINANCIAL DEVELOPMENT FINANCIAL INSTITUTIONS FINANCIAL MARKETS FINANCIAL RESTRUCTURING FINANCIAL SECTOR FINANCIAL SERVICES FINANCIAL STRUCTURE FINANCIAL SYSTEMS GDP GROWTH PATTERN GROWTH RATE GROWTH RATES GROWTH REGRESSIONS HARD BUDGET CONSTRAINTS INCOME INDUSTRIAL SECTOR INFLATION LEGAL SYSTEMS LIQUIDITY M2 MONETARY POLICY NEGATIVE EFFECT NEGATIVE IMPACT PER CAPITA GROWTH POLICY RESEARCH POLITICAL ECONOMY REAL GDP REAL SECTOR REGULATORY FORBEARANCE SECTOR ACTIVITY STANDARD DEVIATION TOTAL FACTOR PRODUCTIVITY TOTAL FACTOR PRODUCTIVITY GROWTH TRANSMISSION OF MONETARY POLICY VALUE ADDED WORKING CAPITAL FINANCIAL CRISES EXTERNAL FINANCE FINANCIAL SYSTEMS FINANCE INDUSTRY FINANCE GROWTH RATE Laeven, Luc Klingebiel, Daniela Kroszner, Randy Financial Crises, Financial Dependence, and Industry Growth |
| relation |
Policy Research Working Paper;No.2855 |
| description |
The authors investigate the link between
financial crises and industry growth. They analyze data from
19 industrial and developing countries that have experienced
financial crises during the past 30 years to investigate how
financial crises affect sectors dependent on external
sources of finance. Specifically, the authors examine
whether the impact of a financial crisis on externally
dependent sectors varies with the depth of the financial
system. They find that sectors highly dependent on external
finance tend to experience a greater contraction of value
added during a crisis in deeper financial systems than in
countries with shallower financial systems. They hypothesize
that the deepening of the financial system allows sectors
dependent on external finance to obtain relatively more
external funding in normal periods, so a crisis in such
countries would have a disproportionately negative effect on
externally dependent sectors. In contrast, since externally
dependent firms tend to obtain relatively less external
financing in shallower financial systems (and hence have
relatively lower growth rates in such countries during
normal times), a crisis in such countries has less of a
disproportionately negative effect on the growth of
externally dependent sectors. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
Laeven, Luc Klingebiel, Daniela Kroszner, Randy |
| author_facet |
Laeven, Luc Klingebiel, Daniela Kroszner, Randy |
| author_sort |
Laeven, Luc |
| title |
Financial Crises, Financial Dependence, and Industry Growth |
| title_short |
Financial Crises, Financial Dependence, and Industry Growth |
| title_full |
Financial Crises, Financial Dependence, and Industry Growth |
| title_fullStr |
Financial Crises, Financial Dependence, and Industry Growth |
| title_full_unstemmed |
Financial Crises, Financial Dependence, and Industry Growth |
| title_sort |
financial crises, financial dependence, and industry growth |
| publisher |
World Bank, Washington, D.C. |
| publishDate |
2013 |
| url |
http://documents.worldbank.org/curated/en/2002/06/1943366/financial-crises-financial-dependence-industry-growth http://hdl.handle.net/10986/14285 |
| _version_ |
1764429915901394944 |