TY - JOUR
T1 - Investment and financial constraints in transition economies
T2 - Micro evidence from Poland, the Czech Republic, Bulgaria and Romania
AU - Konings, Jozef
AU - Rizov, Marian
AU - Vandenbussche, Hylke
N1 - Funding Information:
The authors thank the Flemish Science Foundation (FWO) for funding.
Copyright:
Copyright 2004 Elsevier Science B.V., Amsterdam. All rights reserved.
PY - 2003/2/1
Y1 - 2003/2/1
N2 - We investigate to what extent firm investment in transition countries is sensitive to internal finance. We find that firms in Bulgaria and Romania are less sensitive to internal financing constraints, in contrast to firms in Poland and the Czech Republic. A likely explanation is that Bulgaria and Romania experience a stronger persistence of soft budget constraints than the other two more advanced countries.
AB - We investigate to what extent firm investment in transition countries is sensitive to internal finance. We find that firms in Bulgaria and Romania are less sensitive to internal financing constraints, in contrast to firms in Poland and the Czech Republic. A likely explanation is that Bulgaria and Romania experience a stronger persistence of soft budget constraints than the other two more advanced countries.
KW - Financial constraints
KW - Investment
KW - Soft budget constraint
KW - Transition to a market economy
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U2 - 10.1016/S0165-1765(02)00210-0
DO - 10.1016/S0165-1765(02)00210-0
M3 - Article
AN - SCOPUS:0037294418
SN - 0165-1765
VL - 78
SP - 253
EP - 258
JO - Economics Letters
JF - Economics Letters
IS - 2
ER -