Complementarities in the development of local markets, 2013
Citation: IMF Working Papers 2014, 234; 10.5089/9781498372978.001.A001Notes: Stock market capitalization, private bond market capitalization, and public bond market capitalization are measured at end-2013. Private credit is credit to the private sector by banks and non-banking institutions (as a percent of GDP), measured at end-2013. Creditor rights is an index of creditor rights, following La Porta et al. (1998) and obtained from Djankov, McLiesh, and Shleifer (2007) for January 2003. A score of one is assigned when each of the following rights of secured lenders are defined in laws and regulations: 1) there are restrictions, such as creditor consent or minimum dividends, for a debtor to file for reorganization; 2) secured creditors are able to seize their collateral after the reorganization petition is approved, i.e., there is no “automatic stay” or “asset freeze”; 3) secured creditors are paid first out of the proceeds of liquidating a bankrupt firm, as opposed to other creditors such as government or workers; 4) management does not retain administration of its property pending the resolution of the reorganization. The index ranges from 0 (weak creditor rights) to 4 (strong creditor rights).Sources: World Bank Financial Structure Database, LaPorta, Lopez-de-Silanes, and Shleifer (2006), Djankov, McLiesh, and Shleifer (2007), and Djankov, LaPorta, Lopez-de-Silanes, and Shleifer (2008).