Causes of Asset Shortages in Emerging Markets

Author/Editor:

Jiaqian Chen ; Patrick A. Imam

Publication Date:

May 1, 2011

Electronic Access:

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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:

We first illustrate that emerging markets (EMs) face a shortage of financial assets, with financial assets not growing as rapidly as domestic savings. We then estimate the asset shortage in EMs for 1995-2008. We develop a model that explains how asset shortage develop, and then econometrically estimate the causes of asset shortages. We conclude with policy implications.

Series:

Working Paper No. 11/114

English

Publication Date:

May 1, 2011

ISBN/ISSN:

9781455262373/1018-5941

Stock No:

WPIEA2011114

Format:

Paper

Pages:

41

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