Financial Liberalization, Credit Constraints, and Collateral : Investment in the Mexican Manufacturing Sector /

This paper examines the impact of financial liberalization on fixed investment in Mexico, using establishment-level data from the manufacturing sector. It analyzes changes in cash-flow sensitivities and uses an innovative approach to explore the role of real estate as collateral and deal with a pote...

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Bibliografske podrobnosti
Glavni avtor: Gelos, R.
Drugi avtorji: Werner, Alejandro
Format: Revija
Jezik:English
Izdano: Washington, D.C. : International Monetary Fund, 1999.
Serija:IMF Working Papers; Working Paper ; No. 1999/025
Online dostop:Full text available on IMF
Opis
Izvleček:This paper examines the impact of financial liberalization on fixed investment in Mexico, using establishment-level data from the manufacturing sector. It analyzes changes in cash-flow sensitivities and uses an innovative approach to explore the role of real estate as collateral and deal with a potential censoring problem. The results suggest that financial constraints were eased for small firms but not for large ones. However, banks' reliance on collateral in their lending operations increased the importance of real estate. The results provide microeconomic evidence consistent with the role attributed to 'financial accelerator' mechanisms during lending booms and during recessions that stem from financial crises.
Opis knjige/članka:<strong>Off-Campus Access:</strong> No User ID or Password Required
<strong>On-Campus Access:</strong> No User ID or Password Required
Fizični opis:1 online resource (41 pages)
Format:Mode of access: Internet
ISSN:1018-5941
Dostop:Electronic access restricted to authorized BRAC University faculty, staff and students