The Impact of the Global Financial Crisis on Industry Growth

22 Pages Posted: 25 Feb 2016

See all articles by Tomoe Moore

Tomoe Moore

Brunel University London

Ali Mirzaei

American University of Sharjah

Date Written: March 2016

Abstract

This article investigates the real effects of the recent global financial crisis by using industry panel data across 82 countries. We find that industry growth indicators experienced a sharp drop following the crisis. However, a closer inspection indicates that an adverse effect is pronounced in industries that are more dependent on external finance, and also in those industries that rely on trade credit due to under‐developed financial intermediation. It is also found that low‐ and lower‐middle‐income countries tend to experience a lesser impact on growth. These findings provide new evidence of the negative externalities associated with credit‐market friction.

Suggested Citation

Moore, Tomoe and Mirzaei, Ali, The Impact of the Global Financial Crisis on Industry Growth (March 2016). The Manchester School, Vol. 84, Issue 2, pp. 159-180, 2016. Available at SSRN: https://ssrn.com/abstract=2737642 or http://dx.doi.org/10.1111/manc.12090

Tomoe Moore (Contact Author)

Brunel University London ( email )

Kingston Lane
Uxbridge, Middlesex UB8 3PH
United Kingdom

Ali Mirzaei

American University of Sharjah ( email )

P.O. Box 26666
Sharjah
United Arab Emirates

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