Comparing the Impact of Credit Constraints on the Growth of SMEs in a Transition Country with an Established Market Economy
نویسندگان
چکیده
In 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.
منابع مشابه
Impact of Basel II Capital Accord on Small and Medium Size Enterprises (SME): An Empirical Study on a Group of Export Oriented SMEs
The purpose of this study is to find the relationship between lending to Small and Medium-size Exporter Enterprises (E-SMEs) and the use of Basel II Capital Accord for the first time in the banking system of Iran. Results showed that 96.69 percent of small firms were in the very low risk category of credit portfolio. This proof explains a consistent and balanced relationship between risk- weigh...
متن کاملInvestigating the Effects of Financial Risks with Central Bank Policy Intervention and Foreign Exchange Market Pressure on the Stability of Banking sector Based on Gerton and Ruper Model: Nonlinear Smooth Transition Regression Approach
In the present study, in the first stage, using Gerton and Roper (1977) model, the central bank policy intervention index and foreign exchange market pressure were calculated. Then, using the STAR regression model, the nonlinear effects of financial risks with policy intervention of the central bank and the pressure of the foreign exchange market on the country's banking stability are examined....
متن کاملAnalysis of the Asymmetric Impact of Macroeconomic Factors on credit to the Private Sector During the Boom and Credit Crisis
The trend of bank lending can help to predict future economic conditions, so that too fast or slow credit growth may indicate financial or economic crises. In the Iranian economy, most of the financial resources required by economic enterprises are provided through the provision of facilities by the banking network. Therefore, it is very important for policymakers to know the factors influencin...
متن کاملAssessing macroeconomic shocks, bank stability and the housing market in the Iranian economy with the FAVAR approach
Monetary and credit policies, however, are widely accepted by economists and policymakers as a means of stabilizing the real sector of the economy and achieving sustainable economic growth. However, macroeconomic shocks, in turn, affect the stability of the banking system and real sectors of the economy, including the housing market. Therefore, the study of the impact of macroeconomic shocks o...
متن کاملMoney Growth Rules in an Emerging Small Open Economy with an informal sector
This paper is concerned with the saddle-path stability of monetary growth rules in a two-country two-sector dynamic stochastic general equilibrium model. Alongside standard features of emerging economies, such as a combination of producer and local currency pricing for exports, fiscal dominance and oil exports, this model also incorporates informal labour and production sectors and examines how...
متن کامل