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Over the past decade, China’s growth model has become more reliant on investment and its footprint in global imports has widened substantially. Several economies within China’s supply chain are increasingly exposed to its investment-led growth and face growing risks from a deceleration in investment in China. This note quantifies potential global spillovers from an investment slowdown in China. It finds that a one percentage point slowdown in investment in China is associated with a reduction of global growth of just under one-tenth of a percentage point. The impact is about five times larger than in 2002. Regional supply chain economies and commodity exporters with relatively less diversified economies are most vulnerable to an investment slowdown in China. The spillover effects also register strongly across a range of macroeconomic, trade, and financial variables among G20 trading partners.

Finance --- Business & Economics --- Financial Management & Planning --- Investments --- Economic development --- E-books --- Investments: Commodities --- Exports and Imports --- Industries: General --- Industries: Manufacturing --- Investment --- Capital --- Intangible Capital --- Capacity --- Globalization: Macroeconomic Impacts --- Comparative Studies of Countries --- Trade: General --- Industry Studies: Manufacturing: General --- Macroeconomics: Production --- Commodity Markets --- International economics --- Manufacturing industries --- Investment & securities --- Exports --- Imports --- Manufacturing --- Industrial production --- Commodities --- International trade --- Economic sectors --- Production --- Industries --- Commercial products --- China, People's Republic of

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The recent boom in unconventional energy production is transforming the energy landscape in North America, with important implications for global energy markets and the broader competitiveness outlook. This book, within a unifying policy perspective, examines the impact the upsurge in energy production has had on the manufacturing sectors of the United States, Canada, and Mexico, and of the region as a whole, which produces nearly a quarter of the world’s energy.

Power resources --- Manufacturing industries --- Industries --- Business & Economics --- Manufactures --- Energy --- Energy resources --- Power supply --- Natural resources --- Energy harvesting --- Energy industries --- E-books --- United States --- Investments: Energy --- Foreign Exchange --- Macroeconomics --- Industries: Energy --- Industries: Manufacturing --- Hydrocarbon Resources --- Energy: Demand and Supply --- Prices --- Industry Studies: Manufacturing: General --- Energy and the Macroeconomy --- Energy: General --- Petroleum, oil & gas industries --- Investment & securities --- Currency --- Foreign exchange --- Natural gas sector --- Manufacturing --- Energy sector --- Energy prices --- Oil --- Economic sectors --- Commodities --- Gas industry --- Petroleum industry and trade

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Why did the Great Recession lead to such a slow recovery? I build a model where heterogeneous firms invest in physical and intangible capital, and can default on their debt. In case of default, intangible assets are harder to seize by creditors. Hence, intangible capital faces higher financing costs. This differential is exacerbated in a financial crisis, when default is more likely and aggregate risk bears a higher premium. The resulting fall in intangible investment amplifies the crisis, and gradual intangible spillovers to other firms contribute to its persistence. Using panel data on Spanish manufacturing firms, I estimate the model matching firm-level moments regarding intangibles and financing. The model captures the extent and components of the Great Recession in Spanish manufacturing, whereas a standard model without endogenous intangible investment would miss more than half of the GDP fall. A policy of transfers conditional on firm age could speed up the recovery, as young firms tend to be more financially constrained, particularly regarding intangible investment. Conditioning transfers on firm size or subsidizing credit (as in current E.U. policy) appears to be less effective.

Financial crises. --- Crashes, Financial --- Crises, Financial --- Financial crashes --- Financial panics --- Panics (Finance) --- Stock exchange crashes --- Stock market panics --- Crises --- Financial crises --- E-books --- Investments: General --- Investments: Stocks --- Macroeconomics --- Industries: Manufacturing --- Investment --- Capital --- Intangible Capital --- Capacity --- Financial Crises --- Financing Policy --- Financial Risk and Risk Management --- Capital and Ownership Structure --- Value of Firms --- Goodwill --- Pension Funds --- Non-bank Financial Institutions --- Financial Instruments --- Institutional Investors --- Labor Economics: General --- Industry Studies: Manufacturing: General --- Investment & securities --- Labour --- income economics --- Manufacturing industries --- Economic & financial crises & disasters --- Intangible capital --- Depreciation --- Stocks --- Labor --- Manufacturing --- National accounts --- Financial institutions --- Global financial crisis of 2008-2009 --- Saving and investment --- Labor economics --- Global Financial Crisis, 2008-2009 --- Spain --- Income economics

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This Selected Issues paper analyzes the impact of Mexico’s energy reform on hydrocarbons production. These reforms aim to increase oil and gas production by eliminating the state oil company’s (PEMEX) monopoly on exploration and production of hydrocarbons, while retaining the prime directive that these resources are the property of the Mexican nation. This paper focuses on the nature of reforms and what problems these reforms are addressing. It presents illustrative production scenarios for crude oil and natural gas and estimates the commensurate investment costs and foreign direct investment associated with each scenario. The paper also examines the markets for the distribution of natural gas and electricity.

Carbon dioxide mitigation -- Mexico. --- Energy policy -- Mexico. --- Power resources -- Mexico. --- Business & Economics --- Economic Theory --- Global Financial Crisis, 2008-2009. --- Financial crises --- Economic development --- Global Economic Crisis, 2008-2009 --- Subprime Mortgage Crisis, 2008-2009 --- Development, Economic --- Economic growth --- Growth, Economic --- Economic policy --- Economics --- Statics and dynamics (Social sciences) --- Development economics --- Resource curse --- Investments: Energy --- Investments: Bonds --- Industries: Energy --- Industries: Manufacturing --- Industries: Financial Services --- General Financial Markets: General (includes Measurement and Data) --- Hydrocarbon Resources --- Pension Funds --- Non-bank Financial Institutions --- Financial Instruments --- Institutional Investors --- Electric Utilities --- Industry Studies: Manufacturing: General --- Investment & securities --- Petroleum, oil & gas industries --- Finance --- Manufacturing industries --- International economics --- Natural gas sector --- Mutual funds --- Bond yields --- Sovereign bonds --- Electricity --- Economic sectors --- Financial institutions --- Commodities --- Bonds --- Gas industry --- Electric utilities --- Mexico

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The paper offers a method to quantify benefits and costs of corporate debt restructuring, with an application to Korea. We suggest a "persistent ICR<1" criterion to capture firms that had ICR<1 for multiple consecutive years and thus will likely require restructuring. We assess the benefits of debt restructuring by estimating the effects of removing a firm's debt overhang on its investment and hiring decisions. We refine the assumptions on the cost of debt restructuring based on the literature, and focus not only on creditor losses, but also on the employment impact of corporate restructuring. Benchmark results for Korea suggest 5.5-7.5 percent of GDP creditor losses and a 0.4-0.9 percent of the labor force employment impact from the debt restructuring. These are compensated by a permanent 0.4-0.9 percentage points increase in future GDP growth thanks to higher corporate investment and 0.05-0.1 percent of labor force higher hiring in the subsequent years. The key qualitative result is that corporate debt restructurings "pay off" in the medium term: their economic cost is recouped over about 10 years.

Corporate debt --- Debt relief --- Econometric models --- E-books --- Econometric models. --- Debt renegotiation --- Debt rescheduling --- Debt restructuring --- Relief, Debt --- Renegotiation, Debt --- Rescheduling, Debt --- Restructuring, Debt --- Debtor and creditor --- Corporations --- Debt --- Debt financing (Corporations) --- Law and legislation --- Finance --- Exports and Imports --- Financial Risk Management --- Labor --- Industries: Manufacturing --- Investment --- Capital --- Intangible Capital --- Capacity --- Business Fluctuations --- Cycles --- Bankruptcy --- Liquidation --- Debt Management --- Sovereign Debt --- Employment --- Unemployment --- Wages --- Intergenerational Income Distribution --- Aggregate Human Capital --- Aggregate Labor Productivity --- Labor Force and Employment, Size, and Structure --- International Lending and Debt Problems --- Industry Studies: Manufacturing: General --- Labour --- income economics --- International economics --- Manufacturing industries --- Labor force --- Debt burden --- Manufacturing --- Asset and liability management --- External debt --- Economic sectors --- Debts, External --- Economic theory --- Labor market --- Korea, Republic of --- Income economics