Financial Crisis and Credit Crunch in Korea: Evidence from Firm-Level Data
By E. Borensztein, Jong‐Wha Lee. Social Science Research Network, 2002
190 citations recorded by the source corpus.
This paper analyzes the credit crunch following the recent financial crisis in Korea. Using enterprise-level data, we find that there were big differences in the magnitude of the credit contraction across different types of firms. In particular, chaebol (conglomerate)-affiliated firms appeared to have lost the preferential access to credit they enjoyed in the pre-crisis period, and credit appears to have been reallocated in favor of more efficient firms. This suggests that the credit crunch suffered by certain sectors can be attributed to the adjustment by banks and enterprises to the restructuring of the financial sector, rather than to tight monetary policy or an external credit constraint.
Subfields: Accounting, Finance
View Paper: https://www.semanticscholar.org/paper/aeaba3b478941c9aff60e9156d0de3910680c424
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Citations in the corpus
- Evaluation of credit guarantee policy using propensity score matching (2009, background): “In 1998, the gross domestic product (GDP) level decreased by 6.7% and fixed investment decline was as much as 40% (Borensztein and Lee, 2002).”
- Capital Structure in South Korea: A Quantile Regression Approach (2005, unknown): “…crisis did achieve, in conjunction with other time-varying factors such as the credit crunch experienced in 1998 as a result of the financial crisis (Borenzstein and Lee, 2000), a widespread shift in the relationship between firms’ financing and their agency and other asymmetric information costs.”