Reports from Korea University Advance Knowledge in Investment (Household Debt, Corporate Debt, and the Real Economy: Some Empirical Evidence)

2021 MAY 24 (NewsRx) -- By a News Reporter-Staff News Editor at South Korea Daily Report -- A new study on Investment is now available. According to news reporting from Seoul, South Korea, by NewsRx journalists, research stated, “The rapid accumulation of private debt is widely viewed as a major risk to financial and economic stability. This article systematically and comprehensively assesses the effect of private debt buildup on economic growth.”

Financial support for this research came from Asian Development Bank.

The news correspondents obtained a quote from the research from Korea University, “In the spirit of the existing study that separately examines the effects of two types of private debt - household debt and corporate debt - on growth in advanced economies, we specifically provide new evidence on the growth-private debt nexus in both advanced and emerging market economies (EMEs). Moreover, we construct financial peaks in terms of the speed of debt accumulation rather than crisis dates and find that in both advanced and EMEs, corporate debt buildups cause more financial peaks than household debt buildups. Furthermore, corporate debt-induced financial recessions inflict a bigger damage on output than household debt-induced financial recessions in EMEs.”

According to the news reporters, the research concluded: “Overall, our evidence suggests that policymakers would do well to closely monitor not only household debt but also corporate debt.”

This research has been peer-reviewed.

For more information on this research see: Household Debt, Corporate Debt, and the Real Economy: Some Empirical Evidence. Emerging Markets Finance and Trade, 2021. Emerging Markets Finance and Trade can be contacted at: Routledge Journals, Taylor & Francis Ltd, 2-4 Park Square, Milton Park, Abingdon OX14 4RN, Oxon, England.

Our news journalists report that additional information may be obtained by contacting Kwanho Shin, Korea University, Dept. of Economics, 5-1 Anam Dong, Seoul 136701, South Korea. Additional authors for this research include Donghyun Park and Shu Tian.

The direct object identifier (DOI) for that additional information is: https://doi.org/10.1080/1540496X.2021.1895114. This DOI is a link to an online electronic document that is either free or for purchase, and can be your direct source for a journal article and its citation.

(Our reports deliver fact-based news of research and discoveries from around the world.)