01899cas a2200265 a 4500 AALejournalIMF016673 230101c9999 xx r poo 0 0eng d 5.00 USD 9781513536880 1018-5941 BD-DhAAL BD-DhAAL Karpowicz, Izabela. A Closer Look at Sectoral Financial Linkages in Brazil I : Corporations' Financial Statements / Izabela Karpowicz, Fabian Lipinsky, Jongho Park. Washington, D.C. : International Monetary Fund, 2016. 1 online resource (30 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 Understanding the interplay between firms' balance sheets and the macro-economic environment is important for understanding of the Brazilian economy. A close examination of developments in the nonfinancial corporate sector up to the early 2015 reveals weak equity growth, declining profitability, and rising leverage. The empirical work suggests that adverse shocks to financial variables lead to weaker real GDP growth in Brazil through their effect on corporate leverage, borrowing costs, and default frequencies. An estimation based on a DSGE model with financial frictions indicates that the recent economic downturn in Brazil is largely driven by a decrease in total factor productivity and by negative financial shocks. Mode of access: Internet Lipinsky, Fabian. Park, Jongho. IMF Working Papers; Working Paper ; No. 2016/045 Full text available on IMF http://elibrary.imf.org/view/journals/001/2016/045/001.2016.issue-045-en.xml IMF e-Library