The international evidence on discouraged small businesses

Sugato Chakravarty () and Meifang Xiang

Journal of Empirical Finance, 2013, vol. 20, issue C, 63-82

Abstract: We use a unique firm-level survey database compiled by the World Bank to examine the drivers of discouraged small businesses in various developing economies around the world. We confirm that older and larger firms are less likely to be discouraged and that the level of competition and the relationships of the firms with banks have a significant impact on the probability of a firm in being discouraged. Further analysis suggests that the drivers of borrower discouragement might work differently for firms operating in relatively developed versus underdeveloped economies.

Keywords: Discouraged borrowers; Banking; Emerging markets; Credit rationing; Relationships; Adverse selection (search for similar items in EconPapers)
JEL-codes: G15 G2 O16 (search for similar items in EconPapers)
Date: 2013
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Citations: View citations in EconPapers (61)

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Working Paper: The International Evidence on Discouraged Small Businesses (2012)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:empfin:v:20:y:2013:i:c:p:63-82

DOI: 10.1016/j.jempfin.2012.09.001

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