Please use this identifier to cite or link to this item: http://hdl.handle.net/2381/4352
Title: 'Unproductive' Credit and the South-Korean Crisis.
Authors: Demetriades, Panicos O.
Fattouh, Bassam A.
First Published: Jan-2001
Publisher: Dept. of Economics, University of Leicester.
Abstract: We provide a novel empirical analysis of the South Korean economy that reveals large volumes of excess or 'unproductive' credit since the late 1970s, indicating that a sizeable proportion of total credit was used to refinance unprofitable projects. Our findings are consistent with the hypotheses of 'overlending' and 'overinvestment', which may reflect soft budget constraints and/or moral hazard. We argue that while these weaknesses were not on their own responsible for the financial crisis, their interaction with the risks emanating from capital account liberalisation created fertile ground for financial panic.
Series/Report no.: Papers in Economics
01/2
Links: http://www.le.ac.uk/economics/research/discussion/papers2001.html
http://hdl.handle.net/2381/4352
Type: Report
Appears in Collections:Reports, Dept. of Economics

Files in This Item:
File Description SizeFormat 
econ01-2.pdf215.84 kBAdobe PDFView/Open


Items in LRA are protected by copyright, with all rights reserved, unless otherwise indicated.