Advanced Search
MyIDEAS: Login to save this paper or follow this series

The Effect of Credit Guarantees on R&D Investment of SMEs in Korea

Contents:

Author Info

  • Heshmati, Almas

    ()
    (Jönköping University, Sogang University)

Abstract

Korean government has invested significant amount of resources through credit guarantee funds to promote SMEs survival, performance and R&D investment. This study attempts to identify determinants of provision of credit guarantees and estimate their effects on firms R&D expenditures. The relationship between duration of credit and firm's survival and performance is also investigated. Account is made for heterogeneity by various characteristics of firms when looking at credit guarantee and in-house R&D investment relationships. This study results in identification of factors that enhances efficiency of funds and their effects on firms' R&D investment behavior. It enables feedback effects on the public funds selection of firms guaranteed. A number of policy measures are proposed to promote a better balance between public and private investments to reduce the risk of business failure.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://ftp.iza.org/dp7851.pdf
Download Restriction: no

Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 7851.

as in new window
Length: 25 pages
Date of creation: Dec 2013
Date of revision:
Handle: RePEc:iza:izadps:dp7851

Contact details of provider:
Postal: IZA, P.O. Box 7240, D-53072 Bonn, Germany
Phone: +49 228 3894 223
Fax: +49 228 3894 180
Web page: http://www.iza.org

Order Information:
Postal: IZA, Margard Ody, P.O. Box 7240, D-53072 Bonn, Germany
Email:

Related research

Keywords: Credit Guarantee; SMEs; public funds; R&D investment; firm performance; firm survival; Death Valley;

Find related papers by JEL classification:

This paper has been announced in the following NEP Reports:

References

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
as in new window
  1. Yurdakul, Mustafa & Ic, Yusuf Tansel, 2004. "AHP approach in the credit evaluation of the manufacturing firms in Turkey," International Journal of Production Economics, Elsevier, Elsevier, vol. 88(3), pages 269-289, April.
  2. Ono, Arito & Uesugi, Iichiro & Yasuda, Yukihiro, 2013. "Are lending relationships beneficial or harmful for public credit guarantees? Evidence from Japan's Emergency Credit Guarantee Program," Journal of Financial Stability, Elsevier, Elsevier, vol. 9(2), pages 151-167.
  3. Oh, Inha & Heshmati, Almas & Baek, Chulwoo & Lee, Jeong-Dong, 2006. "Comparative Analysis of Firm Dynamics by Size: Korean Manufacturing," Ratio Working Papers, The Ratio Institute 94, The Ratio Institute.
  4. David Aschauer, 1988. "Is public expenditure productive?," Staff Memoranda, Federal Reserve Bank of Chicago 88-7, Federal Reserve Bank of Chicago.
  5. David Aschauer, 1988. "Does public capital crowd out private capital?," Staff Memoranda, Federal Reserve Bank of Chicago 88-10, Federal Reserve Bank of Chicago.
  6. David, Paul A. & Hall, Bronwyn H. & Toole, Andrew A., 1999. "Is Public R&D a Complement or Substitute for Private R&D? A Review of the Econometric Evidence," Department of Economics, Working Paper Series, Department of Economics, Institute for Business and Economic Research, UC Berkeley qt1sz6g8bv, Department of Economics, Institute for Business and Economic Research, UC Berkeley.
  7. Frei, Frances X. & Harker, Patrick T., 1999. "Measuring aggregate process performance using AHP," European Journal of Operational Research, Elsevier, Elsevier, vol. 116(2), pages 436-442, July.
  8. Hancock, Diana & Wilcox, James A., 1998. "The "credit crunch" and the availability of credit to small business," Journal of Banking & Finance, Elsevier, Elsevier, vol. 22(6-8), pages 983-1014, August.
  9. Park, Keehwan & Ahn, Chang Mo & Kim, Dohyeon & Kim, Saekwon, 2013. "An empirical study of credit spreads in an emerging market: The case of Korea," Pacific-Basin Finance Journal, Elsevier, Elsevier, vol. 21(1), pages 952-966.
  10. Arping, Stefan & Lóránth, Gyöngyi & Morrison, Alan D., 2010. "Public initiatives to support entrepreneurs: Credit guarantees versus co-funding," Journal of Financial Stability, Elsevier, Elsevier, vol. 6(1), pages 26-35, April.
  11. Inha Oh & Jeong-Dong Lee & Almas Heshmati, 2008. "Total Factor Productivity in Korean Manufacturing Industries," Global Economic Review, Taylor & Francis Journals, Taylor & Francis Journals, vol. 37(1), pages 23-50.
  12. Laeven, Luc, 2002. "Financial constraints on investments and credit policy in Korea," Journal of Asian Economics, Elsevier, Elsevier, vol. 13(2), pages 251-269.
  13. King, R.G. & Baxter, M., 1990. "Fiscal Policy In General Equilibrium," RCER Working Papers 244, University of Rochester - Center for Economic Research (RCER).
  14. David Alan Aschauer, 1986. "The equilibrium approach to fiscal policy," Staff Memoranda, Federal Reserve Bank of Chicago 86-2, Federal Reserve Bank of Chicago.
  15. Borensztein, Eduardo & Lee, Jong-Wha, 2002. "Financial crisis and credit crunch in Korea: evidence from firm-level data," Journal of Monetary Economics, Elsevier, Elsevier, vol. 49(4), pages 853-875, May.
  16. Uesugi, Iichiro & Sakai, Koji & Yamashiro, Guy M., 2008. "The Effectiveness of Public Credit Guarantees in the Japanese Loan Market," PIE/CIS Discussion Paper, Center for Intergenerational Studies, Institute of Economic Research, Hitotsubashi University 400, Center for Intergenerational Studies, Institute of Economic Research, Hitotsubashi University.
  17. Nugent, Jeffrey B & Yhee, Seung-Jae, 2002. " Small and Medium Enterprises in Korea: Achievements, Constraints and Policy Issues," Small Business Economics, Springer, Springer, vol. 18(1-3), pages 85-119, Feb.- May.
  18. Diana Hancock and James A. Wilcox., 1998. "The "Credit Crunch" and the Availability of Credit to Small Business," Research Program in Finance Working Papers, University of California at Berkeley RPF-282, University of California at Berkeley.
  19. Banker, Rajiv D. & Chang, Hsihui & Janakiraman, Surya N. & Konstans, Constantine, 2004. "A balanced scorecard analysis of performance metrics," European Journal of Operational Research, Elsevier, Elsevier, vol. 154(2), pages 423-436, April.
  20. Atish R. Ghosh & Swart R. Ghosh, 1999. "East Asia in the Aftermath," IMF Working Papers 99/38, International Monetary Fund.
  21. J. D. Howe & D. G. McFetridge, 1976. "The Determinants of R & D Expenditures," Canadian Journal of Economics, Canadian Economics Association, Canadian Economics Association, vol. 9(1), pages 57-71, February.
Full references (including those not matched with items on IDEAS)

Citations

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:iza:izadps:dp7851. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Mark Fallak).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.