Financial Liberalization and Real Investment : Evidence From Turkish Firms / Cemile Sancak.

Format:

Book

Government document

Author/Creator:

Sancak, Cemile.

Series:

IMF Working Papers; Working Paper ; No. 2002/100

IMF Working Papers

Language:

English

Physical Description:

1 online resource (35 pages)

Place of Publication:

Washington, D.C. : International Monetary Fund, 2002.

Language Note:

English

Summary:

There is increasing emphasis on the importance of efficient financial markets for sustained real investment and economic growth, yet limited empirical research on the effects of the deregulation of financial markets on the firm's investment decisions. The purpose of this paper is to model the impact of financial reforms on borrowing constraints faced by firms and to test the impact of financial reforms on the investment decisions of firms in Turkey. To do so, the paper builds a dynamic investment model, where financial variables and real investment are linked through the net present value of the firm. The derived investment model is employed to test whether Turkey's efforts at financial liberalization in 1980 were able to relax the borrowing constraints faced by Turkish firms. A dynamic panel data methodology is used on a panel data set of 1036 Turkish firms over the 1983-86 period. In addition, time-series analysis is employed on Turkish aggregate data over the 1971-91 period.

Notes:

Bibliographic Level Mode of Issuance: Monograph

Description based on print version record.

ISBN:

9786613778192

9781462345908

1462345905

9781452739144

1452739145

9781281265975

1281265977

9781451898071

145189807X