The Composition Matters: Capital Inflows and Liquidity Crunch During a Global Economic Crisis

• 成果类型: Article
• 署名作者: Tong, Hui; Wei, Shang-Jin
• 署名单位: International Monetary Fund; Columbia University; National Bureau of Economic Research
• 刊物名称: REVIEW OF FINANCIAL STUDIES
• ISSN/ISSBN: 0893-9454
• DOI: 10.1093/rfs/hhq078
• 发表日期: 2011
• 页码: 2023
• 关键词: FOREIGN DIRECT-INVESTMENT; financial constraints; dependence; GLOBALIZATION; FLOWS

摘要

This article studies whether the volume and composition of capital flows affect the degree of credit crunch during the 2007-2009 crisis. Using data on 3,823 firms in 24 emerging countries, we find that, on average, the decline in stock prices was more severe for firms that are intrinsically more dependent on external finance for working capital. Interestingly, while the volume of capital flows per se has no significant effect, the composition matters a lot. In particular, greater dependence on non-FDI capital inflows before the crisis worsens the credit crunch during the crisis, while exposure to FDI alleviates the liquidity constraint.