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Credit demand in Mozambican manufacturing

Author

Listed:
  • Bruce Byiers

    (University of Sussex, Brighton, UK)

  • John Rand

    (University of Copenhagen, Copenhagen K, Denmark)

  • Finn Tarp

    (University of Copenhagen, Copenhagen K, Denmark)

  • Jeanet Bentzen

    (University of Copenhagen, Copenhagen K, Denmark)

Abstract

This paper uses two industrial firm surveys to identify the key determinants of credit demand in Mozambican manufacturing. We construct five different measures of being credit constrained and estimate desired debt demand. Besides firm size and ownership structure, we find evidence that general manager education and business association membership are associated with whether a firm is credit constrained or not. Using our preferred measure of credit constraint suggests that around 43 per cent of the firms surveyed are constrained, and these enterprises would almost triple their debt burden if borrowing constraints were relaxed. Copyright © 2009 John Wiley & Sons, Ltd.

Suggested Citation

  • Bruce Byiers & John Rand & Finn Tarp & Jeanet Bentzen, 2010. "Credit demand in Mozambican manufacturing," Journal of International Development, John Wiley & Sons, Ltd., vol. 22(1), pages 37-55.
    • Handle: RePEc:wly:jintdv:v:22:y:2010:i:1:p:37-55
    DOI: 10.1002/jid.1558
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    References listed on IDEAS

    as
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