The Corporate Saving Glut and Falloff of Investment Spending in OECD Economies
Joseph Gruber and
Steven B. Kamin ()
Additional contact information
Steven B. Kamin: Board of Governors of the Federal Reserve System
IMF Economic Review, 2016, vol. 64, issue 4, No 7, 777-799
Abstract:
Abstract We explore the increase in the net lending of non-financial corporations across the OECD following the global financial crisis. We document that this rise reflects both increases in saving and declines in investment. Panel regressions reveal that the fall in investment across OECD economies was generally in line with fundamentals—GDP growth, interest rates, and profits—though in some countries the weakness was more pronounced. We find little evidence that firms were reducing investment to strengthen their balance sheets, as payments to shareholders remained strong and were uncorrelated with investment. We conclude that, at least from the investment side, the rise in corporate net lending probably does not reflect a shift in corporate behavior relative to past norms.
Keywords: E21; E22; G30 (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (34)
Downloads: (external link)
http://link.springer.com/10.1057/s41308-016-0018-9 Abstract (text/html)
Access to full text is restricted to subscribers.
Related works:
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:pal:imfecr:v:64:y:2016:i:4:d:10.1057_s41308-016-0018-9
Ordering information: This journal article can be ordered from
http://www.springer. ... cs/journal/41308/PS2
DOI: 10.1057/s41308-016-0018-9
Access Statistics for this article
More articles in IMF Economic Review from Palgrave Macmillan, International Monetary Fund
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().