Explaining ASEAN-3’s Investment Puzzle A Tale of Two Sectors
January 14, 2013
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Summary
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.
Subject: Bank credit, Credit, Currencies, Financial crises, Financial institutions, Loans, Money
Keywords: Asia and Pacific, Bank credit, corporate investment, Credit, Currencies, firm, investment slump, Loans, nontradable firm, nontradable sector firm, nontradable sector investment, post crisis credit stagnation, post crisis investment recovery, post crisis period, private investment, sector output, Tobin’s Q, WP
Pages:
25
Volume:
2013
DOI:
---
Issue:
013
Series:
Working Paper No. 2013/013
Stock No:
WPIEA2013013
ISBN:
9781475533736
ISSN:
1018-5941
