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Author: Bo Jiang
Publisher: International Monetary Fund
ISBN: 1498314023
Category : Business & Economics
Languages : en
Pages : 47
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Book Description
Using a new firm-level dataset with comprehensive information on Asian firms’ FX liabilities, we show that Asia’s nonfinancial corporate sector is vulnerable to a tightening of global financial conditions. Higher global interest rates and exchange rate depreciation increase the probability of default of Asian firms. A 30 percent currency depreciation is associated with a two-notch downgrade in the corporate credit rating (e.g., from A to BBB+), resulting in 7 percent of Asian firms falling into bankruptcy. But the impact is nonlinear—as the firms’ FX liability increases, the balance sheet channel of exchange rate offsets, then dominates, the competitiveness channel. The balance sheet channel offsets the competitiveness channel when the share of U.S. dollar debt is between 10 and 20 percent. We also find that currency depreciation increases firm-level investment on average, but for firms with the share of FX liabilities above 20 percent, investment contracts with depreciation.
Author: Bo Jiang
Publisher: International Monetary Fund
ISBN: 1498314023
Category : Business & Economics
Languages : en
Pages : 47
Get Book Here
Book Description
Using a new firm-level dataset with comprehensive information on Asian firms’ FX liabilities, we show that Asia’s nonfinancial corporate sector is vulnerable to a tightening of global financial conditions. Higher global interest rates and exchange rate depreciation increase the probability of default of Asian firms. A 30 percent currency depreciation is associated with a two-notch downgrade in the corporate credit rating (e.g., from A to BBB+), resulting in 7 percent of Asian firms falling into bankruptcy. But the impact is nonlinear—as the firms’ FX liability increases, the balance sheet channel of exchange rate offsets, then dominates, the competitiveness channel. The balance sheet channel offsets the competitiveness channel when the share of U.S. dollar debt is between 10 and 20 percent. We also find that currency depreciation increases firm-level investment on average, but for firms with the share of FX liabilities above 20 percent, investment contracts with depreciation.
Author: Bo Jiang
Publisher: International Monetary Fund
ISBN: 1498311504
Category : Business & Economics
Languages : en
Pages : 47
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Book Description
Using a new firm-level dataset with comprehensive information on Asian firms’ FX liabilities, we show that Asia’s nonfinancial corporate sector is vulnerable to a tightening of global financial conditions. Higher global interest rates and exchange rate depreciation increase the probability of default of Asian firms. A 30 percent currency depreciation is associated with a two-notch downgrade in the corporate credit rating (e.g., from A to BBB+), resulting in 7 percent of Asian firms falling into bankruptcy. But the impact is nonlinear—as the firms’ FX liability increases, the balance sheet channel of exchange rate offsets, then dominates, the competitiveness channel. The balance sheet channel offsets the competitiveness channel when the share of U.S. dollar debt is between 10 and 20 percent. We also find that currency depreciation increases firm-level investment on average, but for firms with the share of FX liabilities above 20 percent, investment contracts with depreciation.
Author: Mr.Harald Finger
Publisher: International Monetary Fund
ISBN: 1513512331
Category : Business & Economics
Languages : en
Pages : 76
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Book Description
This paper looks empirically at some economic effects of volatile exchange rates and financial conditions and examines policy responses for managing such volatility. It also sheds light on some economic costs that stem from volatile capital flows and exchange rates and analyzes how countries deploy their policy toolkits in response. The data-driven analysis should contribute to ongoing reflections about how to manage volatile capital flows and exchange rates both in Asian EMEs and more broadly.
Author: Minsuk Kim
Publisher: International Monetary Fund
ISBN: 1513511149
Category : Business & Economics
Languages : en
Pages : 42
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Book Description
This paper examines how financial development influences the debt dollarization of nonfinancial firms in a sample of emerging market economies (EMEs). The macroeconomic channels are identified from an optimal portfolio allocation model and assessed empirically using the accounting information of nonfinancial firms from 21 EMEs during 2009–2017. The results show that financial development, measured by the private credit-to-GDP ratio, mainly reduces the influence of exchange rate volatility in determining a firm's debt currency composition, among other channels. Furthermore, the effect of exchange rate volatility becomes statistically insignificant beyond an estimated threshold credit-to-GDP ratio of 100 percent.
Author: GASTON. SAHAY GELOS (RATNA.)
Publisher: International Monetary Fund
ISBN:
Category :
Languages : en
Pages : 2040
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Book Description
Author: International Monetary Fund. Asia and Pacific Dept
Publisher: International Monetary Fund
ISBN: 1589068408
Category : Business & Economics
Languages : en
Pages : 98
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Book Description
Asia has been hard hit by the global financial crisis. Despite strong fundamentals, its pervasive linkages to the rest of the world have exposed it to the collapse of demand and credit in advanced countries. Exports and industrial production have fallen sharply, capital has started to flow out of the region, and leading indicators suggest further weakness ahead. Against this background, the May 2009 APD REO will discuss the latest developments in Asia, examine the prospects for the period ahead, and consider the policy steps needed to revive economic activity and restore corporate and financial sector health.
![Multinational Corporations and United States Foreign Policy. Hearings, Ninety-third Congress [Ninety-fourth Congress, Second Session] PDF](https://books.google.com/books/content/images/frontcover/qj09AQAAIAAJ?fife=w80-h100)
Author: United States. Congress. Senate. Committee on Foreign Relations. Subcommittee on Multinational Corporations
Publisher:
ISBN:
Category : International business enterprises
Languages : en
Pages : 2410
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Book Description
Author: Barry Eichengreen
Publisher: Oxford University Press on Demand
ISBN: 9780199235889
Category : Business & Economics
Languages : en
Pages : 429
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Book Description
This timely collection of fifteen essays by leading economists explores how rapid economic growth in China and elsewhere in Asia is reshaping the world economy.
Author: Ishwar C. Dhingra
Publisher: Taylor & Francis
ISBN: 100089875X
Category : Social Science
Languages : en
Pages : 511
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Book Description
India and the South-East Asia are typical case studies of interest for students of development economics. These countries have served as role models for most of the emerging economies. Sustainable Development in India and South-East Asia attempts to explore and analyse the nature of economic relationship between India and the South-East Asia. It assesses the prospects for this relationship to grow and flourish. Finally, it makes suggestions to strengthen and carry forward this relationship. Print edition not for sale in South Asia (India, Sri Lanka, Nepal, Bangladesh, Pakistan and Bhutan)
Author: World Bank Group
Publisher: World Bank Publications
ISBN: 1464813248
Category : Business & Economics
Languages : en
Pages : 345
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Book Description
Global growth has eased but remains robust and is projected to reach 3.1 percent in 2018. It is expected to edge down in the next two years, to 2.9 percent by 2020, as global slack dissipates, trade and investment moderate, and financing conditions tighten. Growth in advanced economies is predicted to decelerate toward potential rates as monetary policy normalizes and the effects of U.S. fiscal stimulus wane. In emerging market and developing economies (EMDEs), growth in commodity importers will remain robust, while the rebound in commodity exporters is projected to mature during the next two years. Progress in per capita income growth will be uneven, however, remaining particularly subdued in Sub-Saharan Africa. Risks to the outlook remain tilted to the downside. The possibilities of escalating trade protectionism and disorderly financial market movements have increased substantially in recent months, and the risk of heightened geopolitical tensions continues to cloud the outlook. EMDE policymakers need to rebuild monetary and fiscal policy buffers and be prepared for rising global interest rates and possible episodes of financial market turbulence. In the longer run, EMDEs need to tackle ongoing structural challenges and boost potential growth, by promoting competitiveness, adaptability to technological change, and trade openness. Global Economic Prospects is a World Bank Group Flagship Report that examines global economic developments and prospects, with a special focus on emerging market and developing countries, on a semiannual basis (in January and June). The January edition includes in-depth analyses of topical policy challenges faced by these economies, while the June edition contains shorter analytical pieces.
