Investment and Credit Constraints in Transition Economies: Micro Evidence from Poland, the Czech Republic, Bulgaria and Romania
AbstractIn this paper we investigate to what extent firm investment in transition countries is sensitive to internal finance. We use accounts data of over 4000 companies in four countries at different stages of transition. We find that firms in Bulgaria and Romania are less sensitive to internal financing constraints, in contrast to firms in Poland and the Czech Republic. A likely explanation is that Bulgaria and Romania, which are the least advanced in the reforms towards market economy, have a stronger persistence of soft budget constraints than in the other two more advanced countries.
Download InfoIf 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.
Bibliographic InfoPaper provided by LICOS - Centre for Institutions and Economic Performance, KU Leuven in its series LICOS Discussion Papers with number 11202.
Length: 13 pages
Date of creation: 2002
Date of revision:
Contact details of provider:
Postal: De Bériotstraat 34, B-3000 Leuven
Phone: +32 (0) 16 / 32 6598
Fax: +32 (0) 16 / 32 6599
Web page: http://www.econ.kuleuven.be/licos
More information through EDIRC
Investment; financial constraints; soft budget constraint; transition to a market economy;
Find related papers by JEL classification:
- E22 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Capital; Investment; Capacity
- G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
- P21 - Economic Systems - - Socialist Systems and Transition Economies - - - Planning, Coordination, and Reform
- D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
- D92 - Microeconomics - - Intertemporal Choice - - - Intertemporal Firm Choice, Investment, Capacity, and Financing
This paper has been announced in the following NEP Reports:
- NEP-ALL-2004-07-04 (All new papers)
- NEP-CFN-2004-07-04 (Corporate Finance)
- NEP-FIN-2003-11-03 (Finance)
- NEP-MAC-2003-11-03 (Macroeconomics)
- NEP-MFD-2004-07-04 (Microfinance)
- NEP-TRA-2004-07-04 (Transition Economics)
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Spatareanu, Mariana & Javorcik, Beata S., 2008.
"Liquidity constraints and linkages with multinationals,"
HWWI Research Papers
2-14, Hamburg Institute of International Economics (HWWI).
- Smarzynska Javorcik, Beata & Spatareanu, Mariana, 2008. "Liquidity Constraints and Linkages with Multinationals," CEPR Discussion Papers 7058, C.E.P.R. Discussion Papers.
- Beata S. Javorcik & Mariana Spatareanu, 2008. "Liquidity Constraints and Linkages with Multinationals," Working Papers Rutgers University, Newark 2008-005, Department of Economics, Rutgers University, Newark.
- Beata S. Javorcik & Mariana Spatareanu, 2008. "Liquidity Constraints and Linkages with Multinationals," LICOS Discussion Papers 22508, LICOS - Centre for Institutions and Economic Performance, KU Leuven.
- Florian MAYNERIS, 2011.
"A new perspective on the firm size-growth relationship: Shape of profits, investment and heterogeneous credit constraints,"
Discussion Papers (IRES - Institut de Recherches Economiques et Sociales)
2011044, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
- MAYNERIS, Florian, 2011. "A new perspective on the firm size-growth relationship: shape of profits, investment and heterogeneous credit constraints," CORE Discussion Papers 2011062, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Ciaian, Pavel & Fa?kowski, Jan & d’Artis, Kanc & Pokrivcak, Jan, 2011. "Productivity and Credit Constraints: Firm-Level Evidence from Propensity Score Matching," Factor Markets Working Papers 99, Centre for European Policy Studies.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ().
If references are entirely missing, you can add them using this form.