رشد شرکت های کوچک و متوسط در اقتصادهای گذار
Abstract
1- Introduction
2- Related literature
3- Financial sector in the transition economies
4- Data and variables
5- Methodology and empirical results
6- Conclusion
References
Abstract
In this study, I investigate the impact of firm-level financial constraints and corruption in the business environment on growth for over 10,000 small- and medium-sized enterprises (SMEs) in 28 Eastern European and Central Asian countries. I also examine the determinants of firms’ financial constraints and the relevant role of country-level development, institutions, and corruption. I find that financial constraints negatively affect both firm sales growth and employment growth while corruption has no direct impact on growth. Older, larger, foreign-owned firms and firms with higher ownership concentration report lower financial constraints while exporting firms report higher financial constraints. In countries with higher levels of GDP per capita, stock market development, legal systems and property rights, and lower levels of corruption, firms face lower levels of financial constraints. I provide novel empirical evidence that firm-level corruption hinders SMEs’ access to financing and seriously hampers their growth in transition economies.
Introduction
A large body of literature has documented the importance of firm growth in facilitating country-level financial development (e.g. Rajan & Zingales, 1998; Wurgler, 2000; Levine & Zervos, 1998; Levine, Loayza, & Beck, 2000; Bekaert, Harvey, & Lundblad, 2005). The more recent literature highlights the key role played by the broader business environment in promoting and restraining firm growth, especially for small- and medium-sized enterprises (SMEs) (e.g. Beck, Demirgüc¸ -Kunt, & Maksimovic, 2005; Beck, Demirguc-Kunt, Laeven, & Levine, 2008). While some constraints in the business environment hinder firm growth directly, others may not have direct impact on growth (Ayyagari, Demirgüc¸ -Kunt, & Maksimovic, 2008). The effectiveness of a country’s institutions helps firms reducing certain growth constraints, especially financial constraints (Beck, Demirgüc¸ -Kunt, Laeven, & Maksimovic, 2006). SMEs are an important part of a country’s economic development. Economic growth of many less developed countries depends on the growth of their SMEs. Governments and policy makers of developing countries often adopt policies with an aim to improve business environments for SMEs by reducing market and institutional constraints impeding their growth. In this study, using a unique firm-level survey database, I investigate the impact of financial constraints and corruption in the business environment on growth for SMEs in 28 Eastern European and Central Asian (ECA) countries. I also investigate the determinants of firm financial constraints and the relevant role of a country’s institutions and corruption.