How Costly are (Agricultural) Investments during Economic Transition? A Critical Literature Appraisal

Nataliya Zinych and Martin Odening

No 50319, 2009 Conference, August 16-22, 2009, Beijing, China from International Association of Agricultural Economists

Abstract: This paper critically examines a large strand of empirical literature with regard to (agricultural) finance and investment in economic transition. Our main contribution is to summarize empirical evidence for the co-existence of credit constraints and soft budget constraints (SBC) and to highlight a conceptual framework for their appropriate classification. This is of particular interest since credit constraints and SBC have really different economic effects, and the lack of discrimination between these forms of capital market imperfections may lead to wrong (agricultural) policy implications. Apparently, credit constraints in transitional economies became more important than soft budget constraints for firms’ growth and structural change.

Keywords: Agricultural Finance; Financial Economics (search for similar items in EconPapers)
Pages: 16
Date: 2009
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://ageconsearch.umn.edu/record/50319/files/Zinych_IAAE_2009_208.pdf (application/pdf)

Related works:
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:ags:iaae09:50319

DOI: 10.22004/ag.econ.50319

Access Statistics for this paper

More papers in 2009 Conference, August 16-22, 2009, Beijing, China from International Association of Agricultural Economists Contact information at EDIRC.
Bibliographic data for series maintained by AgEcon Search ().