Financial Intermediary Development, Output And Export Under Credit Market Imperfections

This study examines the long-run relationship between financial intermediary development, output and export under three credit market imperfections – role of financial intermediaries, financial accelerator and currency mismatch. In particular, this study has (1) examined the direct relationship betw...

Full description

Saved in:

Bibliographic Details
Main Author:	Tang, Kin Boon
Format:	Thesis
Language:	English English
Published:	2007
Subjects:	Financial institutions
Online Access:	http://psasir.upm.edu.my/id/eprint/5022/1/FEP_2007_10.pdf
Tags:	Add Tag No Tags, Be the first to tag this record!

id	my-upm-ir.5022
record_format	uketd_dc
spelling	my-upm-ir.50222013-05-27T07:19:50Z Financial Intermediary Development, Output And Export Under Credit Market Imperfections 2007 Tang, Kin Boon This study examines the long-run relationship between financial intermediary development, output and export under three credit market imperfections – role of financial intermediaries, financial accelerator and currency mismatch. In particular, this study has (1) examined the direct relationship between financial intermediary development and output fluctuations (2) examined the dampening and magnifying effects of financial intermediaries on output fluctuations via the propagation of real and monetary shocks, (3) examined the impact of exchange rate movements on exports under the condition of foreign currency borrowing and credit constraint and (4) evaluated the impact of external finance premium on various sectorial productions and aggregate outputs growth. An aggregate data panel is constructed for the countries under study and the cointegration hypothesis among the variables is verified using Pedroni’s and Westerlund’s panel cointegration tests. The idiosyncratic, individual and group-mean panel cointegrating vectors are then estimated using FMOLS and DOLS developed by Pedroni.Using data from 17 countries at different income levels in East Asia-Pacific, the empirical results indicate that (1) strong and robust evidence for dampening effect of real shocks, (2) somewhat weak evidence for magnifying effect of monetary shocks, (3) financial intermediary development to some extent have direct impact on output fluctuations if countries are bank-dependent, (4) the larger the level of country’s foreign debt and credit constraint results more negative response of exports to currency depreciation, (5) country’s export with high foreign currency denominated debt are more vulnerable to negative exchange rate shocks and (6) the negative relationship between the external finance premium and the aggregate output growth seems to be strengthened in middle income than in the sectorial production growth. Financial institutions 2007 Thesis http://psasir.upm.edu.my/id/eprint/5022/ http://psasir.upm.edu.my/id/eprint/5022/1/FEP_2007_10.pdf application/pdf en public phd doctoral Universiti Putra Malaysia Financial institutions Faculty Economics and Management English
institution	Universiti Putra Malaysia
collection	PSAS Institutional Repository
language	English English
topic	Financial institutions
spellingShingle	Financial institutions Tang, Kin Boon Financial Intermediary Development, Output And Export Under Credit Market Imperfections
description	This study examines the long-run relationship between financial intermediary development, output and export under three credit market imperfections – role of financial intermediaries, financial accelerator and currency mismatch. In particular, this study has (1) examined the direct relationship between financial intermediary development and output fluctuations (2) examined the dampening and magnifying effects of financial intermediaries on output fluctuations via the propagation of real and monetary shocks, (3) examined the impact of exchange rate movements on exports under the condition of foreign currency borrowing and credit constraint and (4) evaluated the impact of external finance premium on various sectorial productions and aggregate outputs growth. An aggregate data panel is constructed for the countries under study and the cointegration hypothesis among the variables is verified using Pedroni’s and Westerlund’s panel cointegration tests. The idiosyncratic, individual and group-mean panel cointegrating vectors are then estimated using FMOLS and DOLS developed by Pedroni.Using data from 17 countries at different income levels in East Asia-Pacific, the empirical results indicate that (1) strong and robust evidence for dampening effect of real shocks, (2) somewhat weak evidence for magnifying effect of monetary shocks, (3) financial intermediary development to some extent have direct impact on output fluctuations if countries are bank-dependent, (4) the larger the level of country’s foreign debt and credit constraint results more negative response of exports to currency depreciation, (5) country’s export with high foreign currency denominated debt are more vulnerable to negative exchange rate shocks and (6) the negative relationship between the external finance premium and the aggregate output growth seems to be strengthened in middle income than in the sectorial production growth.
format	Thesis
qualification_name	Doctor of Philosophy (PhD.)
qualification_level	Doctorate
author	Tang, Kin Boon
author_facet	Tang, Kin Boon
author_sort	Tang, Kin Boon
title	Financial Intermediary Development, Output And Export Under Credit Market Imperfections
title_short	Financial Intermediary Development, Output And Export Under Credit Market Imperfections
title_full	Financial Intermediary Development, Output And Export Under Credit Market Imperfections
title_fullStr	Financial Intermediary Development, Output And Export Under Credit Market Imperfections
title_full_unstemmed	Financial Intermediary Development, Output And Export Under Credit Market Imperfections
title_sort	financial intermediary development, output and export under credit market imperfections
granting_institution	Universiti Putra Malaysia
granting_department	Faculty Economics and Management
publishDate	2007
url	http://psasir.upm.edu.my/id/eprint/5022/1/FEP_2007_10.pdf
_version_	1747810333215424512

Financial Intermediary Development, Output And Export Under Credit Market Imperfections

Similar Items