Home » Private-Sector Financial Liabilities in Advanced Economies: Is More Better? by Man-Keung Tang
Private-Sector Financial Liabilities in Advanced Economies: Is More Better? Man-Keung Tang

Private-Sector Financial Liabilities in Advanced Economies: Is More Better?

Man-Keung Tang

Published May 9th 2014
ISBN : 9781283516075
ebook
32 pages
Enter the sum

 About the Book 

Advanced economies have been experiencing diverse developments in accumulation of financial liabilities by their household and corporate sectors since around 1995. Crosscountry- industry evidence indicates that the type of the financial system andMoreAdvanced economies have been experiencing diverse developments in accumulation of financial liabilities by their household and corporate sectors since around 1995. Crosscountry- industry evidence indicates that the type of the financial system and the degree of labor market flexibility matter for the economic impact of expanded borrowings. Especially in countries with a more arms length-based financial system and less rigid labor market, faster creation of corporate liabilities in recent years appears to have spurred growth of industries more reliant on external finance, and strengthened the development of growing industries. The findings suggest an association of recent increases in corporate borrowings with a reduction in costs of external finance and improvement in resource allocation-two supposed channels through which finance facilitates growth.