Capital controls, corporate debt and real effects
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- dc.contributor.author Fabiani, Andrea
- dc.contributor.author López Piñeros, Martha
- dc.contributor.author Peydró, José-Luis
- dc.contributor.author Soto, Paul E.
- dc.contributor.other Universitat Pompeu Fabra. Departament d'Economia i Empresa
- dc.date.accessioned 2024-11-14T10:10:09Z
- dc.date.available 2024-11-14T10:10:09Z
- dc.date.issued 2021-09-01
- dc.date.modified 2024-11-14T10:08:34Z
- 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.
- dc.format.mimetype application/pdf*
- dc.identifier https://econ-papers.upf.edu/ca/paper.php?id=1833
- dc.identifier.citation
- dc.identifier.uri http://hdl.handle.net/10230/68668
- dc.language.iso eng
- dc.relation.ispartofseries Economics and Business Working Papers Series; 1833
- dc.rights L'accés als continguts d'aquest document queda condicionat a l'acceptació de les condicions d'ús establertes per la següent llicència Creative Commons
- dc.rights.accessRights info:eu-repo/semantics/openAccess
- dc.rights.uri http://creativecommons.org/licenses/by-nc-nd/3.0/es/
- dc.subject.keyword capital controls; corporate fx-debt; real effects; macroprudential; capital inflows
- dc.subject.keyword Finance and Accounting
- dc.title Capital controls, corporate debt and real effects
- dc.title.alternative
- dc.type info:eu-repo/semantics/workingPaper