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Firms in developing countries cite credit constraints as one of their primary obstacles to investment. Direct foreign … investment, by bringing in scarce capital, may ease domestic firms' credit constraints. Alternatively, if foreign firms borrow … heavily from domestic banks, they may exacerbate domestic firms' credit constraints by crowding them out of domestic capital …
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In this paper, we estimate the behavior of private consumption in Cote d’Ivoire under the permanent income hypothesis using annual data for the period 1970–2016. The first objective is to test the validity of the permanent income hypothesis in Cote d’Ivoire. Our second concern is to...
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By the end of 2013, the share of government debt held by the domestic banking sectors of Eurozone countries was more than twice its 2007 level. We show that this type of increasing reliance on the domestic banking sector for absorbing government bonds generates a crowding out of corporate...
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This paper proposes and tests a theory of credit-driven asset bubbles which are neutral in their real effects. When a …
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