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Causes of Asset Shortages in Emerging Markets

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  • Mr. Jiaqian Chen
  • Patrick A. Imam

Abstract

We first illustrate that emerging markets (EMs) face a shortage of financial assets, with financial assets not growing as rapidly as domestic savings. We then estimate the asset shortage in EMs for 1995-2008. We develop a model that explains how asset shortage develop, and then econometrically estimate the causes of asset shortages. We conclude with policy implications.

Suggested Citation

  • Mr. Jiaqian Chen & Patrick A. Imam, 2011. "Causes of Asset Shortages in Emerging Markets," IMF Working Papers 2011/114, International Monetary Fund.
    • Handle: RePEc:imf:imfwpa:2011/114
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    Cited by:

    1. Grobéty, Mathieu, 2018. "Government debt and growth: The role of liquidity," Journal of International Money and Finance, Elsevier, vol. 83(C), pages 1-22.
    2. Jiaqian Chen & Patrick Imam, 2014. "Consequences of asset shortages in emerging markets," Macroeconomics and Finance in Emerging Market Economies, Taylor & Francis Journals, vol. 7(1), pages 4-35, March.

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