Indonesia's Financial Liberalization

Download or read book Indonesia's Financial Liberalization written by Miranda S. Goeltom and published by Institute of Southeast Asian. This book was released on 1995 with total page 109 pages. Available in PDF, EPUB and Kindle. Book excerpt: Using 1981-99 panel data on Indonesian manufacturing establishments and a survey of 2000 top business in Indonesia, Indonesia's Financial Liberalization analyses the consequences of financial liberalization on investment and allocation of credit, noting differential effects depending on size of firms, organizational form, and other categorizations.Using rigorous econometric tools, the conclusion derived is that although financial liberalization has increased borrowing costs, particularly for smaller firms, it has widened access to finance. The move from administrative-based to market-based allocation of credit has increased credit flow to firms that are more efficient, and these firms consequently have a higher concentration of investment.