The finance-investment link in a transition economy: Evidence for Poland from panel data

Christian Weller ()

No B 04-1999, ZEI Working Papers from University of Bonn, ZEI - Center for European Integration Studies

Abstract: Real investment in Poland declined from 1990 to 1993, and only slowly recovered, while real credit decreased for a number of years, too. Has declining credit adversely affected investment? Controlling for industry and time fixed effect, and using dynamic panel data techniques, I estimate an investment model, which includes external and internal finance as investment determinants. The results suggest that internal and external finance are positively related to investment. Thus, industries seems to operate under hard budget constraints. Also, internal finance is more important than external finance in determining investment, thus indicating that credit rationing occurs. Finally, the effects of external finance are slightly larger among durable goods producing industries than in non-durable goods producing industries.

JEL-codes: E22 F36 O16 (search for similar items in EconPapers)
Date: 1999
References: Add references at CitEc
Citations: View citations in EconPapers (6)

Downloads: (external link)
https://www.econstor.eu/bitstream/10419/39460/1/325872325.pdf (application/pdf)

Related works:
Journal Article: The Finance-Investment Link in a Transition Economy: Evidence For Poland From Panel Data (2001)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:zbw:zeiwps:b041999

Access Statistics for this paper

More papers in ZEI Working Papers from University of Bonn, ZEI - Center for European Integration Studies Contact information at EDIRC.
Bibliographic data for series maintained by ZBW - Leibniz Information Centre for Economics ().