The Output Decline in Asian Crisis Countries: Investment Aspects
IMF Working Papers, February 1, 2002
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- The Output Decline in Asian Crisis Countries: Investment Aspects
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Bibliographic details
- Authors: Joshua E. Greene
- Published: February 1, 2002
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781451844276.001
Overview and purpose
- Author: Joshua E. Greene
- Date: February 1, 2002
- Series: Working Paper No. 2002/025
- Issue: 025
- Volume: 2002
- Pages: 24
- DOI: https://doi.org/10.5089/9781451844276.001
- ISBN: 9781451844276
- ISSN: 1018-5941
- Core question: Whether capital outflows contributed to output declines during the Asian Crisis by reducing financing available for domestic investment.
Summary of empirical findings
- Panel data regressions indicate 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.
- 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.
Key themes and variables analyzed
- Balance of payments
- Bank credit
- Capital flows
- Capital inflows
- Money
- National accounts
- Private capital flows
- Private investment
Keywords and focus areas
- 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
Notable methodological notes
- Uses panel data regressions for a sample of five Asian countries.
- Adjusts real net capital flows by netting out real flows of private bank credit to isolate effects on investment.
- Tests for cointegration between net real private inflows and real private investment in individual countries.
Access and publication notes
- Publication type: IMF Working Papers
- The Working Paper contains research in progress and does not necessarily represent the views of the IMF or IMF policy.
Source: IMF Working Paper “The Output Decline in Asian Crisis Countries: Investment Aspects” by Joshua E. Greene, February 1, 2002.
Content in this bundle
- The Output Decline in Asian Crisis Countries: Investment Aspects - WP/02/25