From the Financial Crisis to the Real Economy: Using Firm-Level Data to Identify Transmission Channels

46 Pages Posted: 29 Aug 2011 Last revised: 10 Nov 2013

See all articles by Stijn Claessens

Stijn Claessens

Bank for International Settlements (BIS)

Hui Tong

International Monetary Fund (IMF)

Shang-Jin Wei

Columbia Business School - Finance and Economics; National Bureau of Economic Research (NBER); Centre for Economic Policy Research (CEPR); International Monetary Fund (IMF); Tsinghua University - School of Economics & Management

Date Written: August 2011

Abstract

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.

Suggested Citation

Claessens, Stijn and Tong, Hui and Wei, Shang-Jin, From the Financial Crisis to the Real Economy: Using Firm-Level Data to Identify Transmission Channels (August 2011). NBER Working Paper No. w17360. Available at SSRN: https://ssrn.com/abstract=1918689

Stijn Claessens (Contact Author)

Bank for International Settlements (BIS) ( email )

Centralbahnplatz 2
CH-4002 Basel
Switzerland

Hui Tong

International Monetary Fund (IMF) ( email )

700 19th Street, N.W.
Washington, DC 20431
United States

Shang-Jin Wei

Columbia Business School - Finance and Economics ( email )

3022 Broadway
New York, NY 10027
United States

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Centre for Economic Policy Research (CEPR)

London
United Kingdom

International Monetary Fund (IMF)

700 19th Street, N.W.
Washington, DC 20431
United States

Tsinghua University - School of Economics & Management

Beijing, 100084
China

Register to save articles to
your library

Register

Paper statistics

Downloads
47
Abstract Views
567
PlumX Metrics