000 02696nam a2200337 a 4500
005 20181210070931.0
007 cr |||||||||||
008 060113s2006 dcu sb i000 0 eng
010 _a 2005705518
040 _aDLC
_cDLC
_dBD-DhBPA
050 0 0 _aHG3881.5.W57
082 _a388.15
_bAYH 2006
100 1 _aAyyagari, Meghana
_9107909
245 1 0 _aHow important are financing constraints ? the role of finance in the business environment
_c Meghana Ayyagari, Vojislav Maksimovic,Asli Demirguc-Kunt.
260 _aWashington, D.C. :
_bWorld Bank,
_c2006
300 _a59 p. ;
_c23 cm.
490 1 _aPolicy research working paper ;
_v3820
500 _aTitle from PDF file as viewed on 1/13/2006.
504 _aIncludes bibliographical references.
520 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.
530 _aAlso available in print.
538 _aSystem requirements: Adobe Acrobat Reader.
538 _aMode of access: World Wide Web.
590 _aZahid
650 0 _aBusiness enterprises
_xFinance
_xMathematical models.
_9108779
700 1 _aMaksimovic, Vojislav
_9107911
700 1 _a Demirguc-Kunt., Asli
_9104539
710 2 _aWorld Bank.
_9108780
830 0 _aPolicy research working papers (Online) ;
_v3820.
_9108781
942 _2ddc
_cBK
999 _c37861
_d37861