Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/63537
Authors: 
Demetriades, Panicos O.
Fattouh, Bassam A.
Year of Publication: 
2006
Series/Report no.: 
Research Paper, UNU-WIDER, United Nations University (UNU) 2006/84
Abstract: 
We provide a novel empirical analysis of the South Korean credit market that reveals large volumes of excess credit since the late 1970s, indicating that a sizeable proportion of total credit was being used to refinance unprofitable projects. Our findings are consistent with theoretical literature that suggests that soft budget constraints and over-borrowing were significant factors behind the Korean financial crisis of 1997-98.
Subjects: 
over-borrowing
South Korea
financial crisis
JEL: 
G18
O16
ISBN: 
9291908622
Document Type: 
Working Paper

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