An Open Economy Model of the Credit Channel Applied to Four Asian Economies

Spiros Bougheasa, Paul Mizena and Cihan Yalcina
Authors registered in the RePEc Author Service: Cihan YALCIN

Discussion Papers from University of Nottingham, Centre for Finance, Credit and Macroeconomics (CFCM)

Abstract: This paper provides a theoretical model of an open economy credit channel including currency mismatch and financial fragility where exporting firms have access to international credit but non-exporting firms do not. It considers the post-crisis outcome which is predicted to be dramatically different for exporters/non-exporters. We examine firms’ access to external finance in four Asian economies after 1997 using a large panel of balance sheet data. Our paper demonstrates that firm heterogeneity is critical to understanding the open economy credit channel effects post-crisis since smaller and less profitable firms are indeed less likely to obtain credit than larger, export-oriented firms.

Keywords: Credit Channel; External Finance; Asian Crisis. (search for similar items in EconPapers)
Date: 2007-09
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Working Paper: An Open Economy Model of the Credit Channel Applied to Four Asian Economies (2007)
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Persistent link: https://EconPapers.repec.org/RePEc:not:notcfc:07/09

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