How Does Long-Term Finance Affect Economic Volatility?

Demirguc-Kunt, Asli ; Horvá ; th, Bá ; lint L. ; Huizinga, Harry

World Bank, Washington, DC

关键词: RISK PROFILES;    CREDIT MARKETS;    MONETARY POLICY;    DEPOSIT;    LIABILITY;   

DOI  :  10.1596/1813-9450-7535
RP-ID  :  WPS7535

学科分类：社会科学、人文和艺术（综合）

来源: World Bank Open Knowledge Repository

【 摘 要 】

This paper examines how the ability toaccess long-term debt affects firm-level growth volatility.The analysis finds that firms in industries with strongerpreference to use long-term finance relative to short-termfinance experience lower growth volatility in countries withbetter-developed financial systems, as these firms maybenefit from reduced refinancing risk. Institutions thatfacilitate the availability of credit information andcontract enforcement mitigate the refinancing risk andtherefore growth volatility associated with short-termfinancing. Increased availability of long-term financereduces growth volatility in crisis as well as non-crisis periods.