Credit Constraints and Growth in a Global Economy

Nicolas Coeurdacier, Stéphane Guibaud () and Keyu Jin
Additional contact information
Stéphane Guibaud: LSE - London School of Economics and Political Science
Keyu Jin: LSE - London School of Economics and Political Science

SciencePo Working papers Main from HAL

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)
Date: 2012-08-01
Note: View the original document on HAL open archive server: https://sciencespo.hal.science/hal-03473915
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://sciencespo.hal.science/hal-03473915/document (application/pdf)

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)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:hal:spmain:hal-03473915

Access Statistics for this paper

More papers in SciencePo Working papers Main from HAL
Bibliographic data for series maintained by Contact - Sciences Po Departement of Economics ().