European Parliament Library

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

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 and the degree of labor market flexibility matter for the economic impact of expanded borrowings. Especially in countries with a more arm's 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
Table Of Contents
Contents; I. Introduction; Figures; 1. Credit to GDP Ratio, 1996-2005; 2. Household and Nonfinancial Corporation Liabilities, 1995 and 2005; II. Recent Developments in Financial Liabilities; A. Households Set the Pace and Continue to Display Large Cross-Country Variation; 3. Household Liabilities to GDP Ratio, 1995 and 2004; B. Corporate Sector Debt Expands Strongly From a High Base and Loans Remain Dominant; 4. Corporate Liabilities to GDP Ratio, 1995 and 2004; C. Household and Corporate Liabilities Expand in Sync; 5. Composition of Change in Total Private-Sector Liabilities, 1995-2005
Literary Form
non fiction
Description based upon print version of record
Physical Description
1 online resource (32 p.)
Specific Material Designation
Form Of Item

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