Credit Constraints and Growth in a Global Economy

Stéphane Guibaud, Nicolas Coeurdacier and Keyu Jin

No 9109, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: In a period of rapid integration and accelerated growth in emerging markets, three striking trends have been (1) a divergence in the private saving rates of emerging markets and advanced economies, (2) large net capital outflows from emerging markets, and (3) a sustained decline in the world interest rate. This paper shows that in a multi-period OLG model, the interaction between growth and household credit constraints --- more severe in emerging markets --- is able to account for all of the above facts. We provide micro-level evidence that corroborates our mechanism: saving behaviors across age groups in the U.S. and China are broadly supportive of the predictions of the model.

Keywords: Capital flows; Credit constraints; Globalization; Life-cycle household savings; Saving and current account imbalances (search for similar items in EconPapers)
JEL-codes: F21 F32 F41 (search for similar items in EconPapers)
Date: 2012-08
New Economics Papers: this item is included in nep-dge and nep-opm
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (11)

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Related works:
Journal Article: Credit Constraints and Growth in a Global Economy (2015)
Working Paper: Credit constraints and growth in a global economy (2015)
Working Paper: Credit Constraints and Growth in a Global Economy (2015)
Working Paper: Credit Constraints and Growth in a Global Economy (2015)
Working Paper: Credit constraints and growth in a global economy (2013)
Working Paper: Credit Constraints and Growth in a Global Economy (2012)
Working Paper: Credit Constraints and Growth in a Global Economy (2012)
Working Paper: Credit constraints and growth in a global economy (2011)
Working Paper: Credit Constraints and Growth in a Global Economy (2011)
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