Credit constraints and profitability: Evidence from a transition economy

Emerging Markets Finance and Trade

Volumn 40, Issue 4, 2004, Pages 63-83

  Rizov, Marian ^a,b  

^a TRINITY COLLEGE DUBLIN   (Ireland)

^b UNIVERSITY OF LEUVEN   (Belgium)

Author keywords

Bulgaria; Credit rationing; Financial intermediation; Profitability; Soft budget constraints

Indexed keywords

EID: 4344655304     PISSN: 1540496X     EISSN: None     Source Type: Journal    
DOI: 10.1080/1540496x.2004.11052580     Document Type: Review

References (46)

1. Abel, A., and O. Blanchard. 1986. "The Present Value of Profits and Cyclical Movement in Investment." Econometrica 54, no. 1: 249-273.
2. Barham, B.; S. Boucher; and M. Carter. 1996. "Credit Constraints, Credit Unions, and Small-Scale Producers in Guatemala." World Development 24, no. 5: 793-806.
3. Barisitz, S. 2001. "The Development of the Romanian and Bulgarian Banking Sectors Since 1990." Oesterreichische Nationalbank Focus on Transition 1: 79-118.
4. Berglof, E., and G. Roland. 1997. "Soft Budget Constraints and Credit Crunches in Financial Transition." European Economic Review 41, nos. 3-5: 807-817.
5. BNB. Various dates. Monetary Survey. Sofia: Bulgarian National Bank.
6. Bratkowski, A.; I. Grosfeld; and J. Rostowski. 2000. "Investment and Finance in de Novo Private Firms." Economics of Transition 8, no. 1: 101-116.
7. Broadman, H.; J. Anderson; C. Claessens; R. Ryterman; S. Slavona; M. Vagliasindi; and G. Vincelette. 2004. Building Market Institutions in South Eastern Europe: Comparative Prospects for Investment and Private Sector Development." Washington, DC: World Bank.
8. Budina, N.; H. Garretsen; and E. de Jong. 2000. "Liquidity Constraints and Investment in Transition Economies: The Case of Bulgaria." Economics of Transition 8, no. 2:453-475.
9. Calvo, G., and F. Coricelli. 1994. "Capital Market Imperfections and Output Response in Previously Centrally Planned Economies." In Building Sound Finance in Emerging Market Economies, ed. G. Caprio, D. Folkers-Landau, and T. Lane, pp. 257-294. Washington, DC: IMF.
10. Catao, L. 1997. "Bank Credit in Argentina in the Aftermath of the Mexican Crisis: Supply or Demand Constrained?" IMF Working Paper 97/32, Washington, DC.
11. Claessens, S., and R. Peters. 1997. "State Enterprise Performance and the Soft Budget Constraints: The Case of Bulgaria." Economics of Transition 5, no. 2: 305-322.
12. de Melo, C., and A. Gelb. 1996. "A Comparative Analysis of Twenty-Eight Transition Countries in Europe and Asia." Post-Soviet Geography and Economics 37, no. 5: 265-285.
13. Dewatripont, M., and E. Maskin. 1995. "Credit and Efficiency in Centralized and Decentralized Economies." Review of Economic Studies 62, no. 4: 541-555.
14. EBRD. 1999. Transition Report 1999: Ten Years of Transition. London: European Bank for Reconstruction and Development.
15. Evans, D., and B. Jovanovic. 1989. "An Estimated Model of Entrepreneurial Choice Under Liquidity Constraints." Journal of Political Economy 97, no. 4: 808-827.
16. Fazzari, S., and B. Petersen. 1993. "Working Capital and Fixed Investment: New Evidence on Financing Constraints." RAND Journal of Economics 24, no. 3: 328-342.
17. Fazzari, S.; G. Hubbard; and B. Petersen. 1988. "Financing Constraints and Corporate Investment." Brookings Papers on Economic Activity 1 (December): 141-195.
18. Feder, G.; L. Lau; J. Lin; and X. Luo. 1990. "The Relationship Between Credit and Productivity in Chinese Agriculture: A Microeconomic Model of Disequilibrium." American Journal of Agricultural Economics 72, no. 5: 1151-1157.
19. Feyzioglu, T., and G. Gelos. 2000. "Why is Private Sector Credit so Low in Bulgaria?" IMF Staff Country Report 00/54, Washington, DC.
20. Gelos, G., and A. Werner. 1999. "Financial Liberalization, Credit Constraints and Collateral: Investment in the Mexican Manufacturing Sector." IMF Working Paper 99/25, Washington, DC.
21. Greenwald, B., and J. Stiglitz. 1993. "Financial Market Imperfections and Business Cycles." Quarterly Journal of Economics 108, no. 1: 77-114.
22. Grosfeld, I., and G. Roland. 1997. "Defensive and Strategic Restructuring in Central European Enterprises." EMERGO Journal of Transforming Economies and Societies 3, no. 4: 21-46.
23. Heckman, J. 1979. "Sample Selection Bias as a Specification Error." Econometrica 47, no. 1: 153-161.
24. Hubbard, G. 1998. "Capital Market Imperfections and Investment." Journal of Economic Literature 36, no. 1: 193-225.
25. IMF. 1999. "Bulgaria: Recent Economic Developments and Statistical Appendix." IMF Staff Country Report 99/26, Washington, DC.
26. _. 2000. "Bulgaria: Selected Issues and Statistical Appendix." IMF Staff Country Report 00/54, Washington, DC.
27. Jappelli, T. 1990. "Who Is Credit Constrained in the U.S. Economy?" Quarterly Journal of Economics 105, no. 1: 219-234.
28. Jorgenson, D. 1971. "Econometric Studies of Investment Behavior: A Survey." Journal of Economic Literature 9, no. 4: 1111-1147.
29. Jovanovic, B. 1982. "Selection and the Evolution of Industry." Econometrica 50, no. 3: 649-670.
30. King, R., and R. Levine. 1993. "Finance and Growth: Schumpeter Might be Right." Quarterly Journal of Economics 108, no. 3: 717-738.
31. Konings, J.; M. Rizov; and H. Vandenbussche. 2003. "Investment and Credit Constraints in Transition Economies: Micro Evidence from Poland, the Czech Republic, Bulgaria and Romania." Economics Letters 78, no. 2: 253-258.
32. Levine, R.; N. Loayza; and T. Beck. 2000. "Financial Intermediary Development and Economic Growth: Causality and Causes." Journal of Monetary Economics 46, no. 1:31-77.
33. Lizal, L., and J. Svejnar. 2002. "Investment, Credit Rationing and the Soft Budget Constraint: Evidence from Czech Panel Data." Review of Economics and Statistics 84, no. 2: 353-370.
34. Maddala, G. 1983. Limited Dependent and Qualitative Variables in Econometrics. Cambridge: Cambridge University Press.
35. Milde, H., and J. Riley. 1988. "Signaling in Credit Markets." Quarterly Journal of Economics 103, no. 1: 101-129.
36. Myers, S., and N. Majluf. 1984. "Corporate Financing and Investment Decisions When Firms Have Information That Investors Do Not Have." Journal of Financial Economics 13, no. 2: 187-221.
37. OECD. 1999. OECD Economic Surveys 1998-99: Bulgaria. Paris: Organization for Economic Cooperation and Development.
38. Pazarbasioglu, C. 1997. "A Credit Crunch? Finland in the Aftermath of Banking Crisis." IMF Staff Papers 44, no. 2: 315-327.
39. Perotti, E. 1993. "Bank Lending in Transition Economies." Journal of Banking and Finance 17, no. 5: 1021-1032.
40. Rajan, R., and L. Zingales. 1995. "What Do We Know About Capital Structure? Some Evidence from International Data." Journal of Finance 50, no. 5: 1421-1460.
41. _. 1998. "Financial Dependence and Growth." American Economic Review 88, no. 3: 559-586.
42. Rizov, M. 2001. "Capital Structure Theory and Its Practical Implications for Firm Financial Management in Central and Eastern Europe." EMERGO Journal of Transforming Economies and Societies 8, no. 4: 74-86.
43. Schardax, F., and T. Reininger. 2001. "The Financial Sector in Five Central and Eastern European Countries: An Overview." Oesterreichische Nationalbank Focus on Transition 1: 30-64.
44. Schiantarelli, F. 1995. "Financial Constraints and Investment: A Critical Review of Methodological Issues and International Evidence." In Is Bank Lending Important for the Transmission of Monetary Policy? ed. L. Peek and E. Rosengren, pp. 177-214. Boston: Federal Reserve Bank.
45. Stiglitz, J., and A. Weiss. 1981. "Credit Rationing in Markets with Imperfect Information." American Economic Review 71, no. 3: 393-410.
46. Zeller, M. 1994. "Determinants of Credit Rationing: A Study of Informal Lenders and Formal Credit Groups in Madagascar." World Development 22, no. 12: 1895-1907.