SUERF Policy Brief How do financial crises impact manufacturing

This model allows me to estimate both the direct effect of financial crises on the growth of all industries and the external finance dependence channel that reduces the growth of more financially dependent industries. [...] This panel data model includes further controls for the intensity of banking crises (measured by their implied loss in terms of GDP), the effect of banking crises during the GFC period and the attenuating effect of macroprudential policies on growth. [...] Effect of financial crises on manufacturing growth through the external finance dependence channel The total effect of financial crises on industrial growth The total impact of financial crises on manufacturing growth can differ from the external finance channel. [...] Figure 2 now shows the total impact of financial crises on manufacturing growth, considering both the direct effect on all industries and the external finance dependence channel. [...] The views expressed are those of the authors and not necessarily those of the institutions the authors are affiliated with.