Description

We first illustrate that emerging markets (EMs) face a shortage of financial assets, with financial assets not growing as rapidly as domestic savings. We then estimate the asset shortage in EMs for 1995-2008. We develop a model that explains how asset shortage develop, and then econometrically estimate the causes of asset shortages. We conclude with policy implications.

Taxonomy

Capital markets , Demand , Economic development , Financial institutions and markets , Investment , Supply

More publications in this series: Working Papers

More publications by: Jiaqian Chen ; Patrick A. Imam