We analyse the investment-to-cash flow relationship in Europe using a sample of manufacturing small- and medium-sized enterprises (SME) over period 2009–2016. investigate effect regional institutional quality on sensitivity, finding that, although credit constraints remain serious problem for European SMEs, high-quality institutions contribute to mitigate dependency internally-generated resourc...

This study proposes an information asymmetry hypothesis to examine why bank credit ratings vary among countries even when bank financial ratios remain constant. Countries are divided among those with low and high information asymmetry. The former include high-income countries, those in North America and West Europe regions, and those with strong institutional environment quality, whereas the la...

Conventional measures of banking sector The traditional indicators utilized for assessing the size, depth and development of a country’s banking (financial) sector are: • The ratio of M2 to GDP • The ratio of private credit to GDP. In particular, both these measures have been used to show the causal effects of financial development on economic growth. However, both measures have some limitation...

Over the last five crop seasons, cotton production has tripled in Burkina Faso after the country began a sectoral reform. The first step of the reform consisted of setting up a new institutional design giving rights to farmers to create their own groups while the second step established a professional partnership (with a privatization process for the former parastatal cotton firm) where cotton ...

The preference of farmers between commercial and co-operative banks for borrowing has been studied with the objectives finding (a) distribution institutional credit across various categories to assess coverage quantum credit, (b) socio-economic factors which affect behaviour towards banks. In study, based on 100 farmer borrowers, discriminant analysis carried out. study offered some suggestions...

I In the development literature two recent strands of institutional economics have been influential. One is associated with the theory of imperfect information: the underlying rationale of institutional arrangements and contracts (formal or informal) are explained in terms of strategic behavior under asymmetric information among the different parties involved. This theory has been fruitfully us...