Publication:
Sudden Stops and Financial Frictions : Evidence from Industry Level Data

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dc.contributor.authorCowan, Kevin
dc.contributor.authorRaddatz, Claudio
dc.date.accessioned2012-03-19T18:01:14Z
dc.date.available2012-03-19T18:01:14Z
dc.date.issued2011-03-01
dc.description.abstractThe nature of the microeconomic frictions that transform sudden stops in output collapses is not only of academic interest, but also crucial for the correct design of policy responses to prevent and address these episodes and the lack of evidence on this regard is an important shortcoming. This paper uses industry-level data in a sample of 45 developed and emerging countries and a differences-in-differences methodology to provide evidence of the role of financial frictions for the consequences of sudden stops. The results show that, consistently with financial frictions being important, industries that are more dependent on external finance decline significantly more during a sudden stop, especially in less financially developed countries. The results are robust to controlling for other possible mechanisms, including labor market frictions. The paper also provides results on the role of comparative advantage during sudden stops and on the usefulness of various policy responses to attenuate the consequences of these shocks.en
dc.identifierhttp://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20110322080205
dc.identifier.doi10.1596/1813-9450-5605
dc.identifier.urihttps://hdl.handle.net/10986/3371
dc.languageEnglish
dc.relation.ispartofseriesPolicy Research working paper ; no. WPS 5605,Paper is funded by the Knowledge for Change Program (KCP)
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo/
dc.subjectABSOLUTE VALUE
dc.subjectACCESS TO FINANCE
dc.subjectACCESS TO INTERNATIONAL FINANCIAL MARKETS
dc.subjectASSET MARKETS
dc.subjectASSET PRICES
dc.subjectASSETS
dc.subjectBALANCE SHEET
dc.subjectBALANCE-SHEET
dc.subjectBANKING SECTOR
dc.subjectBILL
dc.subjectBORROWING CAPACITY
dc.subjectBUSINESS CYCLE
dc.subjectBUSINESS CYCLES
dc.subjectCAPITAL ACCOUNT
dc.subjectCAPITAL CONTROLS
dc.subjectCAPITAL FLIGHTS
dc.subjectCAPITAL FLOW
dc.subjectCAPITAL FLOWS
dc.subjectCAPITAL FLOWS REVERSALS
dc.subjectCAPITAL INFLOWS
dc.subjectCAPITAL INTENSITY
dc.subjectCAPITAL INVESTMENT
dc.subjectCAPITAL NEEDS
dc.subjectCAPITALIZATION
dc.subjectCAR LOANS
dc.subjectCENTRAL BANK
dc.subjectCLOSED ECONOMY
dc.subjectCOLLATERAL
dc.subjectCOMPARATIVE ADVANTAGE
dc.subjectCOMPARATIVE ADVANTAGES
dc.subjectCONSUMER DURABLES
dc.subjectCORPORATE INVESTMENT
dc.subjectCOST OF FUNDS
dc.subjectCREDIT CONSTRAINTS
dc.subjectCREDIT CRUNCH
dc.subjectCREDIT MARKET
dc.subjectCRISES IN EMERGING MARKETS
dc.subjectCURRENCY
dc.subjectCURRENCY CRISES
dc.subjectCURRENT ACCOUNT
dc.subjectDEBT CAPACITY
dc.subjectDEBT CRISIS
dc.subjectDEBT REPAYMENT
dc.subjectDEFLATION
dc.subjectDEPENDENT VARIABLE
dc.subjectDEPRECIATIONS
dc.subjectDETERMINANTS OF FLUCTUATIONS
dc.subjectDEVELOPING COUNTRIES
dc.subjectDEVELOPMENT BANK
dc.subjectDEVELOPMENT ECONOMICS
dc.subjectDEVELOPMENT POLICY
dc.subjectDIVERSIFICATION
dc.subjectDOMESTIC DEMAND
dc.subjectDUMMY VARIABLE
dc.subjectDURABLE
dc.subjectDURABLE GOODS
dc.subjectECONOMIC ACTIVITY
dc.subjectECONOMIC RESEARCH
dc.subjectECONOMIC THEORY
dc.subjectEMERGING ECONOMIES
dc.subjectEMERGING MARKET
dc.subjectEMERGING MARKET COUNTRY
dc.subjectEMERGING MARKETS
dc.subjectEQUALITY
dc.subjectEQUIPMENT
dc.subjectEXCHANGE RATE
dc.subjectEXCHANGE RATE REGIME
dc.subjectEXPENDITURE
dc.subjectEXPENDITURES
dc.subjectEXPORT GOODS
dc.subjectEXPORTS
dc.subjectEXTERNAL FINANCE
dc.subjectEXTERNAL FINANCING
dc.subjectEXTERNAL SHOCK
dc.subjectFINANCIAL ACCOUNT
dc.subjectFINANCIAL CONSTRAINT
dc.subjectFINANCIAL CONSTRAINTS
dc.subjectFINANCIAL CRISES
dc.subjectFINANCIAL CRISIS
dc.subjectFINANCIAL DEVELOPMENT
dc.subjectFINANCIAL FACTORS
dc.subjectFINANCIAL FLOWS
dc.subjectFINANCIAL INTEGRATION
dc.subjectFINANCIAL MARKET
dc.subjectFINANCIAL MARKETS
dc.subjectFINANCIAL NEEDS
dc.subjectFINANCIAL STUDIES
dc.subjectFINANCIAL SUPPORT
dc.subjectFINANCIAL SYSTEM
dc.subjectFINANCING NEEDS
dc.subjectFISCAL POLICIES
dc.subjectFIXED EFFECT
dc.subjectFIXED EFFECTS
dc.subjectFOREIGN EXCHANGE
dc.subjectFOREIGN EXCHANGE RESERVES
dc.subjectFUTURE RESEARCH
dc.subjectGDP
dc.subjectGLOBAL FINANCIAL MARKETS
dc.subjectGLOBALIZATION
dc.subjectGROWTH RATE
dc.subjectGROWTH RATES
dc.subjectHIGH INTEREST RATES
dc.subjectHUMAN CAPITAL
dc.subjectIMBALANCES
dc.subjectINDUSTRIAL COUNTRIES
dc.subjectINFLATION
dc.subjectINFLATION TARGETING
dc.subjectINITIAL DEBT
dc.subjectINSURANCE
dc.subjectINTEREST RATE
dc.subjectINTEREST RATE EFFECTS
dc.subjectINTEREST RATES
dc.subjectINTERNATIONAL BANK
dc.subjectINTERNATIONAL BORROWING
dc.subjectINTERNATIONAL CAPITAL
dc.subjectINTERNATIONAL CAPITAL FLOWS
dc.subjectINTERNATIONAL CAPITAL MARKETS
dc.subjectINTERNATIONAL CREDIT
dc.subjectINTERNATIONAL ECONOMICS
dc.subjectINTERNATIONAL FINANCIAL MARKETS
dc.subjectINTERNATIONAL FINANCIAL STATISTICS
dc.subjectINTERNATIONAL MONEY
dc.subjectINTERNATIONAL RESERVES
dc.subjectLABOR MARKET
dc.subjectLABOR MARKETS
dc.subjectLACK OF ACCESS
dc.subjectLEVERAGE
dc.subjectLIBERALIZATION
dc.subjectLIQUIDITY
dc.subjectLIQUIDITY CRUNCH
dc.subjectLOCAL CURRENCY
dc.subjectLOOSE MONETARY POLICY
dc.subjectMACROECONOMIC PERFORMANCE
dc.subjectMACROECONOMICS
dc.subjectMANUFACTURING INDUSTRIES
dc.subjectMARKET ACCESS
dc.subjectMARKET MECHANISM
dc.subjectMICRO DATA
dc.subjectMONETARY ECONOMICS
dc.subjectMONETARY FUND
dc.subjectMONETARY POLICY
dc.subjectNET EXPORTS
dc.subjectOPEN ECONOMIES
dc.subjectOPEN ECONOMY
dc.subjectOUTPUT
dc.subjectOUTPUT COLLAPSES
dc.subjectOUTPUT DECLINE
dc.subjectOUTPUT DECLINES
dc.subjectPOLICY RESPONSES
dc.subjectPOLITICAL ECONOMY
dc.subjectPRICE CHANGES
dc.subjectPRICE VOLATILITY
dc.subjectPRIVATE CAPITAL
dc.subjectPRIVATE CAPITAL FLOWS
dc.subjectPROPERTY RIGHTS
dc.subjectRANDOM VARIABLE
dc.subjectREAL EXCHANGE RATE
dc.subjectREAL GDP
dc.subjectRECESSION
dc.subjectRECESSIONS
dc.subjectRELATIVE PRICE
dc.subjectRELATIVE PRICES
dc.subjectREMITTANCES
dc.subjectRESERVE
dc.subjectRESERVE ACCUMULATION
dc.subjectRESERVES
dc.subjectRESPONSE TO SHOCKS
dc.subjectSOCIAL COST
dc.subjectSPECULATIVE ATTACK
dc.subjectSTANDARD DEVIATION
dc.subjectSTANDARD DEVIATIONS
dc.subjectSTOCK MARKET
dc.subjectSTOCK MARKET CAPITALIZATION
dc.subjectSTOCK RETURNS
dc.subjectTEQUILA CRISIS
dc.subjectTEST OF EQUALITY
dc.subjectTRADABLE GOODS
dc.subjectTRADE SURPLUS
dc.subjectTRADING
dc.subjectTRADING COSTS
dc.subjectTROUGH
dc.subjectTURNOVER
dc.subjectUNDERDEVELOPED COUNTRIES
dc.subjectUNEMPLOYMENT
dc.subjectVALUE ADDED
dc.subjectWEALTH
dc.subjectWEALTH EFFECT
dc.subjectWEALTH EFFECTS
dc.subjectWEIGHTS
dc.subjectWORKING CAPITAL
dc.subjectWORLD DEVELOPMENT INDICATORS
dc.titleSudden Stops and Financial Frictions : Evidence from Industry Level Dataen
dspace.entity.typePublication
okr.crossref.titleSudden stops and financial frictions: Evidence from industry level data
okr.date.disclosure2011-03-01
okr.date.doiregistration2025-04-10T11:31:23.049655Z
okr.doctypePublications & Research::Policy Research Working Paper
okr.docurlhttp://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20110322080205
okr.guid600351468159314829
okr.identifier.doi10.1596/1813-9450-5605
okr.identifier.externaldocumentum000158349_20110322080205
okr.identifier.internaldocumentum13945691
okr.identifier.reportWPS5605
okr.language.supporteden
okr.pdfurlhttp://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2011/03/22/000158349_20110322080205/Rendered/PDF/WPS5605.pdfen
okr.region.administrativeThe World Region
okr.region.administrativeThe World Region
okr.sectorFinance :: General finance sector
okr.unitDevelopment Research Group (DECRG)
okr.unitDECRG: Macroeconomics & Growth (DECMG)
okr.volume1 of 1
relation.isSeriesOfPublication26e071dc-b0bf-409c-b982-df2970295c87
relation.isSeriesOfPublication.latestForDiscovery26e071dc-b0bf-409c-b982-df2970295c87
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