Comparing the Impact of Credit Constraints on the Growth of SMEs in a Transition Country with an Established Market Economy
AbstractIn this paper we compare the role of internal finance on the growth of firms between a leading transition country, Slovenia and an established market economy, Belgium. We find that firms in Slovenia are more sensitive to internal financing constraints than their Belgian counterparts. This would suggest that although Slovenian firms are no longer recipients of soft budget constraints, capital markets are not yet functioning properly.
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Bibliographic InfoPaper provided by LICOS - Centre for Institutions and Economic Performance, KU Leuven in its series LICOS Discussion Papers with number 15004.
Length: 25 pages
Date of creation: 2004
Date of revision:
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financial constraints; transition economics; manufacturing;
Other versions of this item:
- John Hutchinson & Ana Xavier, 2006. "Comparing the Impact of Credit Constraints on the Growth of SMEs in a Transition Country with an Established Market Economy," Small Business Economics, Springer, vol. 27(2), pages 169-179, October.
- G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
- P2 - Economic Systems - - Socialist Systems and Transition Economies
- L6 - Industrial Organization - - Industry Studies: Manufacturing
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-ENT-2004-07-04 (Entrepreneurship)
- NEP-MFD-2004-07-04 (Microfinance)
- NEP-TRA-2004-07-04 (Transition Economics)
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