Capital controls, corporate debt and real effects
Mostra el registre complet Registre parcial de l'ítem
- dc.contributor.author Fabiani, Andrea
- dc.contributor.author López Piñeros, Martha
- dc.contributor.author Peydró, José-Luis
- dc.contributor.author Soto, Paul Eduardo
- dc.date.accessioned 2022-03-28T13:11:22Z
- dc.date.available 2022-03-28T13:11:22Z
- dc.date.issued 2021-09
- dc.description.abstract Non-US firms have massively borrowed dollars (foreign currency, FX), which may lead to booms and crises. We show the real effects of capital controls, including prudential benefits, through a firm-debt mechanism. Our identification exploits the introduction of a tax on FX-debt inflows in Colombia before the global financial crisis (GFC), and administrative, proprietary datasets, including loan-level credit register data and firm-level information on FX-debt inflows and imports/exports. Our results show that capital controls substantially reduce FX-debt inflows, particularly for firms with larger ex-ante FX-debt exposure. Moreover, firms with weaker local banking relationships cannot substitute FX-debt with domestic-debt and experience a reduction in total debt and imports upon implementation of the policy. However, our results suggest that, by preemptively reducing pre-crisis firm-level debt, capital controls boost exports during the subsequent GFC, especially among financially-constrained firms.ca
- dc.description.sponsorship Project supported by a 2018 Leonardo Grant for Researchers and Cultural Creators, BBVA Foundation. This project has received funding from the European Research Council (ERC) under the European Union’s Horizon 2020 research and innovation programme (grant agreement No 648398). Peydró also acknowledges financial support from the PGC2018-102133-B-I00 (MCIU/AEI/FEDER, UE) grant and the Spanish Ministry of Economy and Competitiveness, through the Severo Ochoa Programme for Centres of Excellence in R&D (SEV-2015-0563)en
- dc.format.mimetype application/pdf*
- dc.identifier.uri http://hdl.handle.net/10230/52784
- dc.language.iso engca
- dc.relation.ispartofseries Economics and Business Working Papers Series;1833
- dc.relation.projectID info:eu-repo/grantAgreement/ES/1PE/SEV-2015-0563
- dc.relation.projectID info:eu-repo/grantAgreement/EC/H2020/648398
- dc.relation.projectID info:eu-repo/grantAgreement/ES/2PN/PGC2018‐102133‐B‐I00
- dc.rights.accessRights info:eu-repo/semantics/openAccessca
- dc.subject.keyword Capital controlsen
- dc.subject.keyword Corporate FX-debten
- dc.subject.keyword Real effectsen
- dc.subject.keyword Macroprudentialen
- dc.subject.keyword Capital inflowsen
- dc.title Capital controls, corporate debt and real effectsca
- dc.type info:eu-repo/semantics/workingPaperca