Credit constraints and investment in human capital: Training evidence from transition economies

Alexander Popov

Journal of Financial Intermediation, 2014, vol. 23, issue 1, 76-100

Abstract: Using a unique survey database of 8265 firms from 25 transition economies, I find that lack of access to finance in general, and to bank credit in particular, is associated with significantly lower investment in on-the-job training. This effect is stronger in education-intensive industries and in industries facing good global growth opportunities. To address endogeneity issues, I use the structure of local credit markets as an instrument for credit constraints at the firm-level. In addition, in panel estimates, I control for the presence of unobserved firm-level heterogeneity, as well as for changes in macroeconomic conditions.

Keywords: Credit constraints; Human capital; On-the-job training (search for similar items in EconPapers)
Date: 2014
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Citations: View citations in EconPapers (39)

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Working Paper: Credit constraints and investment in human capital: training evidence from transition economies (2013)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:jfinin:v:23:y:2014:i:1:p:76-100

DOI: 10.1016/j.jfi.2013.11.003

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