Liquidity Constraint on the Production of Firms in Southern Italy
The paper shows how small and medium enterprises located in the less developed regions of Southern Italy face higher liquidity constraints compared to the firms in the Central-Northern Italian regions. The reasons for these constraints are the undersized nature of firms and higher risk of business activity. Consequently, credit rationing is more extensive. In order to analyse the effects on the potential growth of firms’ production, a simple model is presented, followed by estimates for growth. The results confirm the existence of a bottleneck of financial resources devoted to current finance production that limits the accumulation of working capital even when faced with favourable market opportunities. Copyright Springer 2005
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.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Volume (Year): 25 (2005)
Issue (Month): 2 (09)
|Contact details of provider:|| Web page: http://www.springer.com|
|Order Information:||Web: http://www.springer.com/new+%26+forthcoming+titles+%28default%29/journal/11187/PS2|
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.:
- Paola Sapienza, 2002. "The Effects of Banking Mergers on Loan Contracts," Journal of Finance, American Finance Association, vol. 57(1), pages 329-367, 02.