Title: Credit constraints to investment behaviour: evidence from Bulgaria
Authors: Konings, Joep ×
Vandenbussche, Hylke
Rizov, Marian
Issue Date: 2002
Publisher: K.U.Leuven
Series Title: LICOS-Discussion paper 112/02
Abstract: In this paper we investigate to what extent firm investment in transition countries is sensitive to internal finance. We use accounts data of over 4000 companies in four countries at different stages of transition. We find that firms in Bulgaria and Romania are less sensitive to internal financing constraints, in contrast to firms in Poland and the Czech Republic. A likely explanation is that Bulgaria and Romania, which are the least advanced in the reforms towards market economy, have a stronger persistence of soft budget constraints than in the other two more advanced countries.
Publication status: published
KU Leuven publication type: IR
Appears in Collections:LICOS - Centre for Institutions and Economic Performance, Leuven
Research Center of Monetary and Information Economics, Leuven
Department of Economics, Leuven - miscellaneous
× corresponding author

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