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Asia and Pacific > Thailand

You are looking at 1 - 6 of 6 items for :

  • Type: Journal Issue x
  • Money Supply; Credit; Money Multipliers x
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Cover IMF Working Papers
Does Taxation Stifle Corporate Investment? Firm-Level Evidence from ASEAN Countries
Mr. Serhan Cevik
and
Fedor Miryugin
This paper conducts a firm-level analysis of the effect of taxation on corporate investment patterns in member states of the Association of Southeast Asian Nations (ASEAN). Using large-scale panel data on nonfinancial firms over the period 1990–2014, and controlling for macro-structural differences among countries, we find a significant degree of persistence in firms’ net fixed investments over time, which vary with firm characteristics, such as size, sales, profitability, leverage, and age. Our analysis brings up interesting empirical results, including nonlinear patterns of behavior in firms’ capital investment decisions acrosss ASEAN countries. Concerning the main variable of interest, we find that a moderate level of taxation does not hinder business investment, but this effect turns negative as higher tax burden raises the user cost of capital and distorts resource allocations.
Keywords:
WP; firm characteristic; investment behavior; firm level; nonfinancial firm; Corporate income tax; investment; leverage; firm performance; fixed investment; cost of capital; Capital spending; Public investment and public-private partnerships (PPP); Tax incidence; Private investment; Global; Southeast Asia; Asia and Pacific
Cover IMF Working Papers
Capital Inflows, Credit Growth, and Financial Systems
Ms. Deniz O Igan
and
Zhibo Tan
Exploiting a granular panel dataset that breaks down capital inflows into FDI, portfolio and other categories, and distinguishes between credit to the household sector and to the corporate sector, we investigate the association between capital inflows and credit growth. We find that non-FDI capital inflows boost credit growth and increase the likelihood of credit booms in both household and corporate sectors. For household credit growth, the composition of capital inflows appears to be more important than financial system characteristics. In contrast, for corporate credit growth, both the composition and the financial system matter. Regardless of sectors and financial systems, net other inflows are always linked to rapid credit growth. Firm-level data corroborate these findings and hint at a causal link: net other inflows are related to more rapid credit growth for firms that rely more heavily on external financing. Further explorations on how capital flows translate into more credit indicate that both demand and supply side factors play a role.
Keywords:
WP; credit growth; GDP ratio; credit boom; FDI inflow; exchange rate; Financial development; Financial structure; Capital flows; Credit; market capitalization; Capital inflows; Credit booms; Consumer credit; Financial sector development; Global
Cover IMF Working Papers
Explaining ASEAN-3’s Investment Puzzle A Tale of Two Sectors
Yong Sarah Zhou
The prolonged investment decline in post-Asian crisis emerging Asia, in contrast to the swift recovery of economic growth, has remained a puzzle. This paper shows that the post-crisis investment recession has been mainly concentrated in the nontradable sector, and hypothesizes that the slowdown is because firms operating in that sector are financially constrained. Empirical results based on macro and firm-level data from Indonesia, Malaysia, and Thailand (ASEAN-3) support this hypothesis.
Keywords:
WP; firm; nontradable firm; nontradable sector firm; Bank credit; private investment; Tobin’s Q; corporate investment; post crisis investment recovery; sector output; investment slump; nontradable sector investment; post crisis credit stagnation; post crisis period; Credit; Loans; Currencies; Asia and Pacific
Cover IMF Working Papers
Default, Credit Growth, and Asset Prices
Mr. C. A. E. Goodhart
,
Miguel A. Segoviano
, and
Boris Hofmann
This paper uses a Merton-type estimate of the probability of default (PoD) for the main banks in a sample of Organization for Economic Cooperation and Development and middle-income countries as a proxy for the fragility of their banking systems. Based on theory and stylized facts, the paper explores a range of financial and real variables that explain such PoDs across time. We find property price fluctuations and bank credit to be important explanatory factors. There is two-way interaction between these variables and a clearer relationship when the variables are entered as a deviation from trend. The lag structure between such developments and PoDs is long and varies widely across countries. The paper assesses the implications of these findings for economic policy.
Keywords:
WP; asset price; price bubble; property price; bank lending; Probability of default; credit risk; systemic risk; macroeconomic shocks; stress testing; financial surveillance; price variable; property boom; asset gap variable; asset price dynamics; asset price shock; asset price fluctuation; asset price surge; equity price; assets decrease; short interest; bank PoDs; asset price gap; Asset prices; Bank credit; Land prices; Credit; Financial statistics; East Asia
Cover IMF Policy Discussion Papers
The Payment System and Monetary Policy
Mr. Omotunde E. G. Johnson
Achieving the primary objective of price stability without unduly compromising the operational efficiency of the payment system constitutes a major problem for central banks. Routine monetary policy presumes a given institutional and technological framework, including aspects of the payment system. Such a monetary policy concerns itself with intraday and interday credit for payments settlements and with float. Liquidity shocks and panics sometimes pose an additional challenge. In recent years, major and rapid institutional and technological changes in the payment system (mainly to lower risks and augment operational efficiency) have affected the monetary policy decision-making process, particularly in the short run.
Keywords:
PDP; central bank; payment system; monetary policy; payment; market; credit facilities; market operation; A. central bank credit Policy; money multiplier; payment settlement; settlement purpose; central bank credit policy; routine monetary policy; monetary policy point of view; monetary policy transmission mechanism; payments organization; payment system reform; Payment systems; Credit; Central bank credit; Monetary operations; Large value payment systems; Global
Cover IMF Working Papers
Financial Liberalization and Money Demand in Asean Countries: Implications for Monetary Policy
Mr. Robert Dekle
and
Mahmood Pradhan
This paper examines the impact of financial market development and liberalization on money demand behavior in Indonesia, Malaysia, Singapore, and Thailand since the early 1980s. The empirical results indicate continuing instability in the interaction of money growth, economic activity, and inflation. Rapid growth and ongoing changes in financial markets suggest that policy needs to be guided by a wider set of monetary and real sector indicators of inflationary pressures. The feasibility of alternative policy frameworks--including nominal exchange rate targets, and inflation targets--is discussed in the context of the substantial and sustained increase in foreign capital inflows.
Keywords:
WP; money demand; market; broad money; interest rate; monetary policy; Financial Liberalization; Cointegration; money demand equation; time deposit; money demand behavior; broad money velocity; opportunity cost; money market-LIBOR differential; money-broad money; money demand instability; interest rate target; paper market; Singapore bond market; nominal exchange rate; Demand for money; Monetary base; Stock markets; Securities markets; Inflation targeting; Europe