Explaining ASEAN-3’s Investment Puzzle A Tale of Two Sectors
IMF Working Papers, January 14, 2013
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Bibliographic details
- Authors: Yong Sarah Zhou
- Published: January 14, 2013
- Series: IMF Working Papers
Summary
- Title: Explaining ASEAN-3’s Investment Puzzle A Tale of Two Sectors
- Author: Yong Sarah Zhou
- Date: January 14, 2013
- Core finding: The prolonged investment decline in post-Asian crisis emerging Asia, in contrast to the swift recovery of economic growth, has been mainly concentrated in the nontradable sector.
- Central hypothesis: The slowdown in nontradable-sector investment is because firms operating in that sector are financially constrained.
- Evidence: Empirical results based on macro and firm-level data from Indonesia, Malaysia, and Thailand (ASEAN-3) support this hypothesis.
Empirical findings and scope
- Geographic scope: Indonesia, Malaysia, and Thailand (ASEAN-3).
- Data types used: Macro and firm-level data.
- Sectoral pattern:
- Investment recession concentrated in the nontradable sector.
- Contrast noted between investment decline and swift recovery of economic growth after the Asian crisis.
- Support for hypothesis:
- Empirical results from the cited data support the proposition that financial constraints on nontradable-sector firms explain the investment slump.
Subjects and keywords
- 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