 Finance and Investment in Transition: Czech Enterprises, 1993-1994Ronald Anderson and
Chantal Kegels
No 1997015, LIDAM Discussion Papers IRES from Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES) Abstract: In this paper we use enterprise data to study the determinants of investment in Czech industry during the period from 1993 through 1994, a period when the transition toward a market economy was rapidly gaining momentum. We investigate accelerator type models modified to include financial variables intended to reflect the possibility of credit rationing. Overall, we find that finance is an important determinant of investment for firms in a transition economy. In particular we find that de novo private firms and firms privatized early invested heavily during 1993 and that they were financially constrained in 1993 and even more so in 1994. In contrast , state owned enterprises including those that were privatized in the course of 1994 invested relatively little in 1993 and were financially constrained neither in 1993 nor in 1994. This evidence is consistent with a pattern that state owned enterprises were placed under financial discipline relatively early in the Czech transition and that their financial access improved with the approach of their privatization. Pages: 19 There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it. Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:ctl:louvir:1997015 Access Statistics for this paper More papers in LIDAM Discussion Papers IRES from Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES) Place Montesquieu 3, 1348 Louvain-la-Neuve (Belgium). Contact information at EDIRC. |
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