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Testing liquidity constraints in 10 Asian developing countries: an error-correction model approach

Testing liquidity constraints in 10 Asian developing countries: an error-correction model approach
Testing liquidity constraints in 10 Asian developing countries: an error-correction model approach
An error-correction model is used to estimate the fraction of consumers who are liquidity-constrained in 10 Asian developing countries. Our estimates of the fraction of consumers who are liquidity-constrained range between 0.25 and 0.98. We further investigate whether financial liberalization has resulted in the reduction of liquidity constraints in these countries. However, the results find support for this only in the cases of South Korea, Sri Lanka and Taiwan.
0003-6846
2535-2543
Habibullah, Muzafar Shah
1a2e0b22-25d8-4837-af10-b98b03a59ac1
Smith, Peter
7085f0ad-c538-4208-80f4-e9b3fd36b365
Azman-Saini, W.N.W.
10876dc1-d326-428f-bea8-1a6936cf0a32
Habibullah, Muzafar Shah
1a2e0b22-25d8-4837-af10-b98b03a59ac1
Smith, Peter
7085f0ad-c538-4208-80f4-e9b3fd36b365
Azman-Saini, W.N.W.
10876dc1-d326-428f-bea8-1a6936cf0a32

Habibullah, Muzafar Shah, Smith, Peter and Azman-Saini, W.N.W. (2006) Testing liquidity constraints in 10 Asian developing countries: an error-correction model approach. Applied Economics, 38 (21), 2535-2543. (doi:10.1080/00036840500427833).

Record type: Article

Abstract

An error-correction model is used to estimate the fraction of consumers who are liquidity-constrained in 10 Asian developing countries. Our estimates of the fraction of consumers who are liquidity-constrained range between 0.25 and 0.98. We further investigate whether financial liberalization has resulted in the reduction of liquidity constraints in these countries. However, the results find support for this only in the cases of South Korea, Sri Lanka and Taiwan.

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Published date: December 2006

Identifiers

Local EPrints ID: 80300
URI: http://eprints.soton.ac.uk/id/eprint/80300
ISSN: 0003-6846
PURE UUID: a959f644-c349-4d66-8cfb-59b887d47484

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Date deposited: 24 Mar 2010
Last modified: 14 Mar 2024 00:36

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Contributors

Author: Muzafar Shah Habibullah
Author: Peter Smith
Author: W.N.W. Azman-Saini

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