From the Financial Crisis to the Real Economy: Using Firm-level Data to Identify Transmission Channels
Using accounting data for 7722 non-financial firms in 42 countries, we examine how the 2007-2009 crisis affected firm performance and how various linkages propagated shocks across borders. We isolate and compare effects from changes in external financing conditions, domestic demand, and international trade on firms' profits, sales and investment using both sectoral benchmarks and firm-specific sensitivities estimated prior to the crisis. We find that the crisis had a bigger negative impact on firms with greater sensitivity to demand and trade, particularly in countries more open to trade. Interestingly, financial openness appears to have made limited difference.
We would like to thank the participants in the NBER Global Financial Crisis preconference and conference and especially Charles Engel, Kristin Forbes, Jeffrey Frankel, and Linda Tesar for very useful comments and suggestions, and Mohsan Bilal for excellent research assistance. The views expressed in this paper are those of the authors and do not necessarily represent those of the National Bureau of Economic Research, the IMF, or IMF policy.
Claessens, Stijn & Tong, Hui & Wei, Shang-Jin, 2012. "From the financial crisis to the real economy: Using firm-level data to identify transmission channels," Journal of International Economics, Elsevier, vol. 88(2), pages 375-387. citation courtesy of
From the Financial Crisis to the Real Economy: Using Firm-level Data to Identify Transmission Channels, Stijn Claessens, Hui Tong, Shang-Jin Wei. in Global Financial Crisis, Engel, Forbes, and Frankel. 2012