IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Login to save this paper or follow this series

Measuring The "Financing Gap" Of European Corporations. An Update

Registered author(s):

    The "financing gap" measures the need of external funds for the corporate sector as the difference between gross "capital formation" and "savings". Taking advantage of the recent release of data in the ESA95 standard, this paper assembles a set of stylized facts about the corporate financing gap for the main European economies and for the Euro area as a whole. Notably, quarterly data on bank lending to the Euro corporate sector from the European Central Bank enable analysis of the evolution over the current phase of the business cycle. The results update and are consistent with previous findings from data in the ESA79 standard (which cover the period 1970-97 and are discussed in a companion study entitled "The Savings Gap of European Corporations. A first look at the available data"). In particular: (i) a large majority of investment remains funded from internal sources and (ii) bank lending is the principal source of external finance. However, the fact that (iii) loans to corporates tend to overshoot the financing gap during an upturn emerges more clearly in the recent cycle than it did in previous ones.

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

    File URL: http://www.eib.org/attachments/efs/efr_2003_v02_en.pdf
    File Function: Full text
    Download Restriction: no

    Paper provided by European Investment Bank, Economics Department in its series Economic and Financial Reports with number 2003/2.

    as
    in new window

    Length: 11 pages
    Date of creation: 01 Oct 2003
    Date of revision:
    Handle: RePEc:ris:eibefr:2003_002
    Contact details of provider: Postal: 100, boulevard Konrad Adenauer, L-2950 Luxembourg
    Phone: (+352) 43 79 1
    Fax: (+352) 43 79 68 895
    Web page: http://www.eib.org/efs/
    Email:


    More information through EDIRC

    No references listed on IDEAS
    You can help add them by filling out this form.

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    When requesting a correction, please mention this item's handle: RePEc:ris:eibefr:2003_002. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Polyxeni Kanelliadou)

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.