The Output Decline in Asian Crisis Countries: Investment Aspects

Author/Editor:

Joshua E. Greene

Publication Date:

February 1, 2002

Electronic Access:

Free Download. Use the free Adobe Acrobat Reader to view this PDF file

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary:

This paper examines whether capital outflows may have contributed to output declines during the Asian Crisis by reducing the financing available for domestic investment. Panel data regressions suggest a positive, short-term relationship between net capital inflows and investment during the period before 1997 in five Asian countries once real net capital flows are netted out from real flows of private bank credit. In addition, net real private inflows and real private investment appear to have been cointegrated in at least three of these countries, suggesting a long-term relationship as well.

Series:

Working Paper No. 2002/025

Subject:

Balance of payments Bank credit Capital flows Capital inflows Money National accounts Private capital flows Private investment

English

Publication Date:

February 1, 2002

ISBN/ISSN:

9781451844276/1018-5941

Stock No:

WPIEA0252002

Pages:

24

Please address any questions about this title to publications@imf.org