Analyzing and Discussing the Impact of Financial Crises on Industrial Growth Over the Past 40 Years, Based on the Article by Carlos Madeira.

This study examines the impact of financial crises on different industries and the manufacturing sector as a whole. It reveals a direct impact of financial crises on manufacturing growth, along with an additional effect through external financial dependence. Industries that rely on external finance experience lower growth during banking and currency crises, particularly in emerging markets and developing economies. Banking, currency, and sovereign debt crises lead to average reductions in overall manufacturing growth of 2.7%, 6%, and 1%, respectively, with the direct effect being the most significant component. Finally, the study shows that macroprudential policies adopted after the Global Financial Crisis mitigated the decline in growth caused by banking crises.