Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/319976 
Year of Publication: 
2014
Series/Report no.: 
CASMEF Working Paper Series No. WP 2014/10
Publisher: 
LUISS Guido Carli, Department of Economics and Business, Arcelli Centre for Monetary and Financial Studies, Rome
Abstract: 
This paper studies how the process of reallocation of credit across firms behaves before and after financial crises. Applying the methodology proposed by Davis and Haltiwanger (1992) for measuring job reallocation, we track the dynamics of credit reallocation across Korean firms for over three decades (1980−2012). The credit boom preceding the 1997 crisis featured a slowdown of credit reallocation. After the crisis and the associated reforms, the creditless recovery (deleveraging) masked a dramatic intensification and increased procyclicality of credit reallocation. The findings suggest that the crisis and the associated reforms have triggered an efficiency-enhancing increase in the fluidity of the credit market.
Subjects: 
Credit Reallocation
Credit Growth
Financial Crises
JEL: 
E44
Document Type: 
Working Paper

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