02573nam a2200301 a 450000500170000000700150001700800410003201000170007304000230009005000170011308200210013010000230015124501540017426000420032830000200037049000420039050000480043250400410048052014610052153000290198253800470201153800360205865000560209470000260215070000260217671000160220283000530221820181210070931.0cr |||||||||||060113s2006    dcu     sb   i000 0 eng    a  2005705518  aDLCcDLCdBD-DhBPA00aHG3881.5.W57  a388.15bAYH 20061 aAyyagari, Meghana 10aHow important are financing constraints ? the role of finance in the business environmentc Meghana Ayyagari, Vojislav Maksimovic,Asli Demirguc-Kunt.  aWashington, D.C. :bWorld Bank,c2006  a59 p. ;c23 cm.1 aPolicy research working paper ;v3820  aTitle from PDF file as viewed on 1/13/2006.  aIncludes bibliographical references.3 a"What role does the business environment play in promoting and restraining firm growth? Recent literature points to a number of factors as obstacles to growth.  Inefficient functioning of financial markets, inadequate security and enforcement of property rights, poor provision of infrastructure, inefficient regulation and taxation, and broader governance features such as corruption and macroeconomic stability are discussed without any comparative evidence on their ordering.  In this paper, the authors use firm level survey data to present evidence on the relative importance of different features of the business environment.  They find that although firms report many obstacles to growth, not all the obstacles are equally constraining.  Some affect firm growth only indirectly through their influence on other obstacles, or not at all.  Using Directed Acyclic Graph methodology as well as regressions, the authors find that only obstacles related to finance, crime, and political instability directly affect the growth rate of firms.  Robustness tests further show that the finance result is the most robust of the three.  These results have important policy implications for the priority of reform efforts.  They show that maintaining political stability, keeping crime under control, and undertaking financial sector reforms to relax financing constraints are likely to be the most effective routes to promote firm growth. "--World Bank web site.  aAlso available in print.  aSystem requirements: Adobe Acrobat Reader.  aMode of access: World Wide Web. 0aBusiness enterprisesxFinancexMathematical models.1 aMaksimovic, Vojislav 1 a Demirguc-Kunt., Asli2 aWorld Bank. 0aPolicy research working papers (Online) ;v3820.