05499oam 22011894 450 991081719140332120200520144314.01-4623-7695-91-4527-7024-71-282-84377-X1-4518-7311-59786612843778(CKB)3170000000055316(EBL)1608384(SSID)ssj0000943298(PQKBManifestationID)11502963(PQKBTitleCode)TC0000943298(PQKBWorkID)10975195(PQKB)11700696(OCoLC)680613634(IMF)WPIEE2009164(NBER)w15207(MiAaPQ)EBC1608384(IMF)WPIEA2009164(EXLCZ)99317000000005531620020129d2009 uf 0engurcn|||||||||txtccrThe Composition Matters : Capital Inflows and Liquidity Crunch During a Global Economic Crisis /Hui Tong, Shang-Jin Wei1st ed.Washington, D.C. :International Monetary Fund,2009.1 online resource (39 p.)IMF Working Papers"August 2009".1-4519-1739-2 Includes bibliographical references.Contents; I. Introduction; II. Specification and Key Variables; A. Basic Specification; B. Key Data; III. Empirical Analysis; A. The Extent of Financial Constraint; B. The Role of Pre-crisis Exposure to International Finance; Conclusion; References; Tables; 1. Average Change of Stock Price(log); 2a. Summary Statistics; 2b. Correlation of Variables; 3. The Average Effect of Liquidity Crunch Across Countries; 4. Pre-Crisis Exposure to Capital Inflows; 5. Role of Pre-Crisis Exposure to Capital Inflows in Emerging Economies (Volume Effect)6. Role of Pre-Crisis Exposure to Capital Inflows in Emerging Economies (Composition Effect)7. Role of Pre-Crisis Exposure to Capital Inflows (Robusiness Checks); 8. Role of Pre-Crisis Exposure to Capital Inflows (More Robustness Checks); 9. Role of Pre-Crisis Exposure to Capital Inflows in Emerging Economies (Non-financial firms); 10. Placebo Test; 11. Stock Returns Around Lehman Brothers Bankruptcy; Figures; 1. Capital Flow to Emerging Economies; 2. The Extent of Capital Reversal versus the Initial Share of FDI in Capital Flows3. Change in Log Banking Stock Prices vs Pre-Crisis International Bank LoansAppendix; 1. De Jure Financial Openness for Year 2006We study whether capital flows affect the degree of credit crunch faced by a country's manufacturing firms during the 2007-09 crisis. Examining 3823 firms in 24 emerging countries, we find that the decline in stock prices was more severe for firms that are intrinsically more dependent on external finance for working capital. The volume of capital flows has no significant effect on the severity of the credit crunch. However, the composition of capital flows matters: pre-crisis exposure to non-FDI capital inflows worsens the credit crunch, while exposure to FDI alleviates the liquidity constraint. Similar results also hold surrounding the Lehman Brothers bankruptcy.IMF Working Papers; Working Paper ;No. 2009/164Financial crisesEconometric modelsCapital movementsInvestments, ForeignGlobal Financial Crisis, 2008-2009Asset pricesimfCapital flowsimfCapital inflowsimfCapital movementsimfDebts, ExternalimfDeflationimfEconomic & financial crises & disastersimfExports and ImportsimfExternal debtimfFinancial CrisesimfFinancial crisesimfFinancial Risk ManagementimfInflationimfInternational economicsimfInternational InvestmentimfInternational Lending and Debt ProblemsimfLong-term Capital MovementsimfMacroeconomicsimfPrice LevelimfPricesimfUnited StatesimfFinancial crisesEconometric models.Capital movements.Investments, Foreign.Global Financial Crisis, 2008-2009.Asset pricesCapital flowsCapital inflowsCapital movementsDebts, ExternalDeflationEconomic & financial crises & disastersExports and ImportsExternal debtFinancial CrisesFinancial crisesFinancial Risk ManagementInflationInternational economicsInternational InvestmentInternational Lending and Debt ProblemsLong-term Capital MovementsMacroeconomicsPrice LevelPrices332.042Tong Hui1631309Wei Shang-Jin118987International Monetary Fund.Research Dept.DcWaIMFBOOK9910817191403321The Composition Matters3970046UNINA