Financial Crises, FinancialDependence, and Industry Growth

Laeven, Luc ; Klingebiel, Daniela ; Kroszner, Randy

World Bank, Washington, D.C.

关键词: ADVERSE CONSEQUENCES;    ADVERSE EFFECTS;    BALANCE SHEET;    BALANCE SHEETS;    BANK LENDING;   

DOI  :  10.1596/1813-9450-2855
RP-ID  :  WPS2855

学科分类：社会科学、人文和艺术（综合）

来源: World Bank Open Knowledge Repository

【 摘 要 】

The authors investigate the link betweenfinancial crises and industry growth. They analyze data from19 industrial and developing countries that have experiencedfinancial crises during the past 30 years to investigate howfinancial crises affect sectors dependent on externalsources of finance. Specifically, the authors examinewhether the impact of a financial crisis on externallydependent sectors varies with the depth of the financialsystem. They find that sectors highly dependent on externalfinance tend to experience a greater contraction of valueadded during a crisis in deeper financial systems than incountries with shallower financial systems. They hypothesizethat the deepening of the financial system allows sectorsdependent on external finance to obtain relatively moreexternal funding in normal periods, so a crisis in suchcountries would have a disproportionately negative effect onexternally dependent sectors. In contrast, since externallydependent firms tend to obtain relatively less externalfinancing in shallower financial systems (and hence haverelatively lower growth rates in such countries duringnormal times), a crisis in such countries has less of adisproportionately negative effect on the growth ofexternally dependent sectors.