{
  "title": "Credit Constraints, Political Instability, and Capital Accumulation",
  "publication": "IMF Working Papers, December 16, 2013",
  "sourceUrl": "https://www.imf.org/en/publications/wp/issues/2016/12/31/credit-constraints-political-instability-and-capital-accumulation-41134",
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  "summary": "We investigate the complex interactions between credit constraints, political instability, and capital accumulation using a novel approach based on Kiyotaki and Moore’s (1997) theoretical framework.",
  "sections": [
    {
      "heading": "Authors and Publication",
      "content": "- By Risto Herrala, Rima A Turk\n- December 16, 2013\n- IMF Working Papers, Working Paper No. 2013/246\n- Issue: 246\n- Volume: 2013\n- Pages: 26\n- DOI: https://doi.org/10.5089/9781484303085.001\n- Stock No: WPIEA2013246\n- ISBN: 9781484303085\n- ISSN: 1018-5941"
    },
    {
      "heading": "Research Question and Theoretical Framework",
      "content": "- Investigates interactions between credit constraints, political instability, and capital accumulation.\n- Uses a novel approach based on Kiyotaki and Moore’s (1997) theoretical framework."
    },
    {
      "heading": "Data and Empirical Approach",
      "content": "- Draws on a unique firm-level data set from Middle-East and North Africa (MENA).\n- Empirical analysis links firm-level credit conditions to capital accumulation and examines the role of political unrest in shaping credit constraints."
    },
    {
      "heading": "Key Findings",
      "content": "- Empirical findings point to a large and significant effect of credit conditions on capital accumulation.\n- Continued political unrest worsens credit constraints.\n- Results support the view that financial development, measured by a relaxing of financial constraints, is key to macroeconomic development."
    },
    {
      "heading": "Subject Areas and Keywords",
      "content": "- Subject: Capital accumulation, Credit, Credit ceilings, Financial institutions, Financial services, Money, National accounts, Real interest rates, Stocks\n- Keywords: Capital accumulation, Central Asia, Credit, Credit ceilings, credit constraint, credit constraints, credit limit, debt amount, East Africa, enterprise development, equity capital, firm, firm Age, firm investment behavior, firm's fixed assets, MENA countries, Middle East, North Africa, political unrest, Real interest rates, Stocks, Sub-Saharan Africa, WP"
    },
    {
      "heading": "Policy-Relevant Implications (as conveyed by the paper)",
      "content": "- Relaxing financial constraints (financial development) is central to promoting macroeconomic development through higher capital accumulation.\n- Addressing political unrest can alleviate worsening credit constraints and thereby support investment and capital formation.\n\nIMF Working Paper: \"Credit Constraints, Political Instability, and Capital Accumulation\" by Risto Herrala and Rima A Turk (December 16, 2013).\n\n---\n\n Content in this bundle\n\n- PDP-Working Paper\n  - PDP-Working Paper (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - PDP-Working Paper (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/wp/issues/2016/12/31/credit-constraints-political-instability-and-capital-accumulation-41134"
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    "Authors: Risto Herrala, Rima A Turk",
    "Published: December 16, 2013",
    "Series: IMF Working Papers",
    "DOI: https://doi.org/10.5089/9781484303085.001",
    "By Risto Herrala, Rima A Turk",
    "December 16, 2013",
    "IMF Working Papers, Working Paper No. 2013/246",
    "Issue: 246",
    "Volume: 2013",
    "Pages: 26",
    "DOI: https://doi.org/10.5089/9781484303085.001",
    "Stock No: WPIEA2013246",
    "ISBN: 9781484303085",
    "ISSN: 1018-5941",
    "Investigates interactions between credit constraints, political instability, and capital accumulation.",
    "Uses a novel approach based on Kiyotaki and Moore’s (1997) theoretical framework.",
    "Draws on a unique firm-level data set from Middle-East and North Africa (MENA).",
    "Empirical analysis links firm-level credit conditions to capital accumulation and examines the role of political unrest in shaping credit constraints.",
    "Empirical findings point to a large and significant effect of credit conditions on capital accumulation.",
    "Continued political unrest worsens credit constraints.",
    "Results support the view that financial development, measured by a relaxing of financial constraints, is key to macroeconomic development.",
    "Subject: Capital accumulation, Credit, Credit ceilings, Financial institutions, Financial services, Money, National accounts, Real interest rates, Stocks",
    "Keywords: Capital accumulation, Central Asia, Credit, Credit ceilings, credit constraint, credit constraints, credit limit, debt amount, East Africa, enterprise development, equity capital, firm, firm Age, firm investment behavior, firm's fixed assets, MENA countries, Middle East, North Africa, political unrest, Real interest rates, Stocks, Sub-Saharan Africa, WP",
    "Relaxing financial constraints (financial development) is central to promoting macroeconomic development through higher capital accumulation.",
    "Addressing political unrest can alleviate worsening credit constraints and thereby support investment and capital formation.",
    "**PDP-Working Paper**"
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