{
  "title": "Private-Sector Financial Liabilities in Advanced Economies: Is More Better?",
  "publication": "IMF Working Papers, May 1, 2007",
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  "summary": "Advanced economies have been experiencing diverse developments in accumulation of financial liabilities by their household and corporate sectors since around 1995.",
  "sections": [
    {
      "heading": "Summary and main findings",
      "content": "- Advanced economies have experienced diverse developments in accumulation of financial liabilities by their household and corporate sectors since around 1995.\n- Cross-country–industry evidence indicates that:\n  - The type of the financial system and the degree of labor market flexibility matter for the economic impact of expanded borrowings.\n  - In countries with a more arm's length–based financial system and less rigid labor market, faster creation of corporate liabilities in recent years appears to have:\n    - Spurred growth of industries more reliant on external finance.\n    - Strengthened the development of growing industries.\n- The findings suggest an association of recent increases in corporate borrowings with:\n  - A reduction in costs of external finance.\n  - An improvement in resource allocation — two supposed channels through which finance facilitates growth."
    },
    {
      "heading": "Policy-relevant implications and channels",
      "content": "- Financial system structure matters: arm's length–based systems appear to amplify the positive growth effects of corporate borrowing in certain contexts.\n- Labor market flexibility interacts with financial deepening: less rigid labor markets are associated with stronger positive outcomes from expanded corporate liabilities.\n- Mechanisms highlighted:\n  - Cost of external finance: increases in corporate borrowings associated with reduction in costs.\n  - Resource allocation: increased corporate borrowings associated with improvements in resource allocation across industries."
    },
    {
      "heading": "Publication and metadata",
      "content": "- Author: Man-Keung Tang\n- Date: May 1, 2007\n- Series: Working Paper No. 2007/118\n- Issue: 118\n- Volume: 2007\n- Pages: 30\n- DOI: https://doi.org/10.5089/9781451866827.001\n- Stock No: WPIEA2007118\n- ISBN: 9781451866827\n- ISSN: 1018-5941"
    },
    {
      "heading": "Subjects and keywords",
      "content": "- Subject: Financial sector development, Labor market flexibility, Labor markets, Productivity, Real interest rates\n- Keywords: external finance, financial system, GDP, labor market, WP\n\nSource: Man-Keung Tang, \"Private-Sector Financial Liabilities in Advanced Economies: Is More Better?\", IMF Working Papers 2007, 118 (May 1, 2007).\n\n---\n\n Content in this bundle\n\n- wp07118\n  - wp07118 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - wp07118 (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/wp/issues/2016/12/31/private-sector-financial-liabilities-in-advanced-economies-is-more-better-20941"
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    "Authors: Man-Keung Tang",
    "Published: May 1, 2007",
    "Series: IMF Working Papers",
    "DOI: https://doi.org/10.5089/9781451866827.001",
    "Advanced economies have experienced diverse developments in accumulation of financial liabilities by their household and corporate sectors since around 1995.",
    "Cross-country–industry evidence indicates that:",
    "The findings suggest an association of recent increases in corporate borrowings with:",
    "Financial system structure matters: arm's length–based systems appear to amplify the positive growth effects of corporate borrowing in certain contexts.",
    "Labor market flexibility interacts with financial deepening: less rigid labor markets are associated with stronger positive outcomes from expanded corporate liabilities.",
    "Mechanisms highlighted:",
    "Author: Man-Keung Tang",
    "Date: May 1, 2007",
    "Series: Working Paper No. 2007/118",
    "Issue: 118",
    "Volume: 2007",
    "Pages: 30",
    "DOI: https://doi.org/10.5089/9781451866827.001",
    "Stock No: WPIEA2007118",
    "ISBN: 9781451866827",
    "ISSN: 1018-5941",
    "Subject: Financial sector development, Labor market flexibility, Labor markets, Productivity, Real interest rates",
    "Keywords: external finance, financial system, GDP, labor market, WP",
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