IMF Working Papers

The Output Decline in Asian Crisis Countries: Investment Aspects

By Joshua E. Greene

February 1, 2002

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Joshua E. Greene The Output Decline in Asian Crisis Countries: Investment Aspects, (USA: International Monetary Fund, 2002) accessed July 18, 2025
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.

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

Keywords: Asian crisis, Balance sheet, Bank credit, Capital, Capital flows, Capital inflows, Current account, East Asia, Firm, Flow data, GDP deflator, Investment, Investment project, Net capital outflow, Output, Output decline, Private capital flows, Private investment, Private investment, WP

Publication Details

  • Pages:

    24

  • Volume:

    ---

  • DOI:

    ---

  • Issue:

    ---

  • Series:

    Working Paper No. 2002/025

  • Stock No:

    WPIEA0252002

  • ISBN:

    9781451844276

  • ISSN:

    1018-5941

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