The Output Decline in Asian Crisis Countries: Investment Aspects
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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
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