Explaining ASEAN-3’s Investment Puzzle A Tale of Two Sectors

Yong Sarah Zhou

No 2013/013, IMF Working Papers from International Monetary Fund

Abstract: The prolonged investment decline in post-Asian crisis emerging Asia, in contrast to the swift recovery of economic growth, has remained a puzzle. This paper shows that the post-crisis investment recession has been mainly concentrated in the nontradable sector, and hypothesizes that the slowdown is because firms operating in that sector are financially constrained. Empirical results based on macro and firm-level data from Indonesia, Malaysia, and Thailand (ASEAN-3) support this hypothesis.

Keywords: WP; firm; nontradable firm; nontradable sector firm; Bank credit; private investment; Tobin’s Q; corporate investment; post crisis investment recovery; sector output; investment slump; nontradable sector investment; post crisis credit stagnation; post crisis period; Credit; Loans; Currencies; Asia and Pacific (search for similar items in EconPapers)
Pages: 25
Date: 2013-01-14
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://www.imf.org/external/pubs/cat/longres.aspx?sk=40240 (application/pdf)

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:imf:imfwpa:2013/013

Ordering information: This working paper can be ordered from
http://www.imf.org/external/pubs/pubs/ord_info.htm

Access Statistics for this paper

More papers in IMF Working Papers from International Monetary Fund International Monetary Fund, Washington, DC USA. Contact information at EDIRC.
Bibliographic data for series maintained by Akshay Modi ().