Search results for "credit constraints"

Holes in the Dike: the global savings glut, U.S. house prices and the long shadow of banking deregulation

2015

We explore empirically how capital inflows into the US and financial deregulation within the United States interacted in driving the run-up (and subsequent decline) in US housing prices over the period 1990-2010. To obtain an ex ante measure of financial liberalization, we focus on the history of interstate-banking deregulation during the 1980s, i.e. prior to the large net capital inflows into the US from China and other emerging economies. Our results suggest a long shadow of deregulation: in states that opened their banking markets to out-of-state banks earlier, house prices were more sensitive to capital inflows. We provide evidence that global imbalances were a major positive funding sh…

Przejawy finansyzacji na rynku kredytów dla MSP

2016

Małe i średnie przedsiębiorstwa (MSP) odgrywają od lat kluczową rolę w gospodarkach poszczególnych państw i regionów. Stanowią ponad 99% przedsiębiorstw niefinansowych. O ich doniosłym znaczeniu świadczy nie tylko dominująca pozycja pod względem liczby podmiotów, ale również udział w kreowaniu miejsc pracy czy dochodu narodowego. Kluczowym czynnikiem siły i sukcesu MSP jest dostęp do środków finansowych. Badania wskazują, że MSP napotykają większe trudności niż duże firmy w dostępie do źródeł finansowania. W finansowanie swojej działalności, zwłaszcza rozwojowej, MSP angażują mniej środków finansowych pochodzenia zewnętrznego, szczególnie bankowego. Problematykę tę uznać należy za istotną d…

Inflation anchoring and growth: The role of credit constraints

2022

Abstract Can inflation anchoring foster growth? To answer this question, we use panel data on sectoral growth for 22 manufacturing industries from 39 advanced and emerging market economies over 1990–2014 and employ a difference-in-differences strategy based on the theoretical prediction that higher inflation uncertainty particularly depresses investment in industries that are more credit constrained. Industries characterized by high external financial dependence, liquidity needs, and R&D intensity, and low asset tangibility, tend to grow faster in countries with well-anchored inflation expectations. The results, based on an IV approach—using indicators of monetary policy transparency and ce…

The recourse to trade credit by Italian firms during the crisis

rade credit, for many firms, is an essential tool for financing growth. Trade credit indicates a practise to buy goods or services on account without making immediate cash payment. Although trade credit is an important source of funds for small businesses, little has been known about the reasons business customers use it. Economists have linked the use of trade credit to transaction and financing motive. The use of trade credit because credit from other sources, particularly from financial institutions, is limited during recession periods represents a reasonable motive. In order to verify if Italian firms faced to credit restrictions by recurring more intensively to trade credit, we examine…

Regional headquarters and foreign direct investment

2022

Headquarters (HQs) provide a wide range of services, playing a fundamental role in Foreign Direct Investment (FDI). We use the structural gravity equation to investigate the effect of regional HQs on three dimensions of FDI (number of foreign projects, capital investment, and jobs) at the country-pair-sector level. Furthermore, we explore two underlying mechanisms that help explain this relationship: financial constraints and informational costs and uncertainty. We find a positive effect of regional HQs on FDI, as well as intercountry and intersector spillovers. Our results are robust, accounting for HQ intensity, domestic investment, and endogeneity tests.

Entrepreneurship Training and Self-Employment among University Graduates

2012

In economies characterized by low labor demand and high rates of youth unemployment, entrepreneurship training has the potential to enable youth to gain skills and create their own jobs. This paper presents experimental evidence on a new entrepreneurship track that provides business training and personalized coaching to university students in Tunisia. Undergraduates in the final year of licence appliquee were given the opportunity to graduate with a business plan instead of following the standard curriculum. This paper relies on randomized assignment of the entrepreneurship track to identify impacts on labor market outcomes one year after graduation. The analysis finds that the entrepreneur…