Intersectoral financial flows in developing countries Honohan, Patrick; Atiyas, Izak

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Honohan, Patrick ; Atiyas, Izak
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Economic Journal
Developing countries -- Economic aspects; Elasticity (Economics) -- Research; Economics
Academic; Trade
Intersectoral financial flows in developing countries are used to show that business is more flexible than the household in its response to financial market conditions. Changes in the flow of funds from the foreign and government sector cause at most a small response in flow from the household sector compared with the response from the business sector. Swings in the availability of foreign finance or in the government's surplus are absorbed entirely by the business sector, with household coming forward with little if any additional savings.
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