01853cas a2200253 a 4500 AALejournalIMF000817 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451844245 1018-5941 BD-DhAAL BD-DhAAL Gelos, R. Financial Liberalization, Credit Constraints, and Collateral : Investment in the Mexican Manufacturing Sector / R. Gelos, Alejandro Werner. Washington, D.C. : International Monetary Fund, 1999. 1 online resource (41 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students This paper examines the impact of financial liberalization on fixed investment in Mexico, using establishment-level data from the manufacturing sector. It analyzes changes in cash-flow sensitivities and uses an innovative approach to explore the role of real estate as collateral and deal with a potential censoring problem. The results suggest that financial constraints were eased for small firms but not for large ones. However, banks' reliance on collateral in their lending operations increased the importance of real estate. The results provide microeconomic evidence consistent with the role attributed to 'financial accelerator' mechanisms during lending booms and during recessions that stem from financial crises. Mode of access: Internet Werner, Alejandro. IMF Working Papers; Working Paper ; No. 1999/025 Full text available on IMF http://elibrary.imf.org/view/journals/001/1999/025/001.1999.issue-025-en.xml IMF e-Library