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International Liquidity, Financial Constraints and Private Investment in an Emerging Market Economy

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  • Guncvadi, Oner

Abstract

This article examines whether or not the recent surge in the availability of international liquidity helps Turkey revive private investment expenditure. Unlike previous studies, this paper indicates that an increased availability of financial resources after 2002 played a detrimental role in the recent recovery of private investment in Turkey.

Suggested Citation

  • Guncvadi, Oner, 2008. "International Liquidity, Financial Constraints and Private Investment in an Emerging Market Economy," MPRA Paper 9620, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:9620
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    File URL: https://mpra.ub.uni-muenchen.de/9620/1/MPRA_paper_9620.pdf
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    References listed on IDEAS

    as
    1. Guncavdi, Oner & Bleaney, Michael & McKay, Andrew, 1998. "Financial liberalisation and private investment: evidence from Turkey," Journal of Development Economics, Elsevier, vol. 57(2), pages 443-455.
    2. Haramillo, Fidel & Schiantarelli, Fabio & Weiss, Andrew, 1996. "Capital market imperfections before and after financial liberalization: An Euler equation approach to panel data for Ecuadorian firms," Journal of Development Economics, Elsevier, vol. 51(2), pages 367-386, December.
    3. Harris, John R & Schiantarelli, Fabio & Siregar, Miranda G, 1994. "The Effect of Financial Liberalization on the Capital Structure and Investment Decisions of Indonesian Manufacturing Establishments," The World Bank Economic Review, World Bank, vol. 8(1), pages 17-47, January.
    4. Tybout, James R, 1983. "Credit Rationing and Investment Behavior in a Developing Country," The Review of Economics and Statistics, MIT Press, vol. 65(4), pages 598-607, November.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Private investment; financial constraints; international liquidity; Turkey;
    All these keywords.

    JEL classification:

    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory
    • E22 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Investment; Capital; Intangible Capital; Capacity
    • E44 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Financial Markets and the Macroeconomy

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