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Intersectoral Financial Flows in Developing Countries

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  • Honohan, Patrick
  • Atiyas, Izak

Abstract

This paper is about financial flows in developing countries. It reviews the evidence on who the borrowers and lenders are. Apart from collecting and summarizing available data from some seventeen countries, the paper presents the results of an econometric analysis of the interactions between the net lending behaviour of the different sectors. The paper is organized as follows. Section 2 clarifies some terms and in particular explains what a complete set of flow of funds accounts looks like. Section 3 provides an analytical framework for the consideration of flow of funds data. Section 4 reports the main data on sectoral surpluses and deficits and summarizes the empirical findings on their mutual interaction and on their determinants. Section 5 describes the typical pattern in developing countries of financial flows by instrument. A summary and conclusion is presented in section 6.
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  • Honohan, Patrick & Atiyas, Izak, 1993. "Intersectoral Financial Flows in Developing Countries," Economic Journal, Royal Economic Society, vol. 103(418), pages 666-679, May.
  • Handle: RePEc:ecj:econjl:v:103:y:1993:i:418:p:666-79
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    Cited by:

    1. Christopher J. Green & Victor Murinde, 2003. "Flow of funds: implications for research on financial sector development and the real economy," Journal of International Development, John Wiley & Sons, Ltd., vol. 15(8), pages 1015-1036.
    2. Oriana Bandiera & Gerard Caprio & Patrick Honohan & Fabio Schiantarelli, 2000. "Does Financial Reform Raise or Reduce Saving?," The Review of Economics and Statistics, MIT Press, vol. 82(2), pages 239-263, May.
    3. Ajit Singh, 1998. "Savings, investment and the corporation in the East Asian miracle," Journal of Development Studies, Taylor & Francis Journals, vol. 34(6), pages 112-137.
    4. Servaas Storm & C. W. M. Naastepad, 2005. "Forum 2005," Development and Change, International Institute of Social Studies, vol. 36(6), pages 1059-1094, November.
    5. Cruz Luzuriaga, Manuel & Pérez Caldentey, Esteban, 2017. "Monitoring the evolution of Latin American economies using a flow-of-funds framework," Financiamiento para el Desarrollo 42362, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
    6. Akyuz, Yilmaz & Gore, Charles, 1996. "The investment-profits nexus in East Asian industrialization," World Development, Elsevier, vol. 24(3), pages 461-470, March.
    7. Singh, Ajit, 1994. "How East Asia grew so fast? slow progress towards an analytical consensus," MPRA Paper 53830, University Library of Munich, Germany.
    8. Bandiera, Oriana & Caprio, Gerard & Honohan, Patrick & Schiantarelli, Fabio, 1999. "Does financial reform increase or reduce savings ?," Policy Research Working Paper Series 2062, The World Bank.
    9. Patrick Honohan, 1995. "The Impact of Financial and Fiscal Policies on Saving," Papers WP059, Economic and Social Research Institute (ESRI).
    10. Yilmaz Akyüz, 1994. "Libéralisation financière : mythes et réalités," Revue Tiers Monde, Programme National Persée, vol. 35(139), pages 521-555.

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