Financial Crisis and Financing Constraints of SMEs in Visegrad Countries

Petr Korab and Jitka Poměnková

No 485, WIFO Working Papers from WIFO

Abstract: The paper investigates the access of small and medium-sized enterprises to external financing during the recent financial crisis via non-parametric density estimation. The kernel density estimation is applied on a firm-level measure of financing constraints and evaluates its distribution on a balanced panel of SMEs. For application and cross-country comparison we use panel data on Limited Liability enterprises in the Czech Republic, Poland, Slovakia and Hungary. Our results reveal asymmetric impact of the financial crisis on the ability of SMEs to secure external financing. We identify that there is no sizeable difference in access to credit of SMEs in Hungary and Poland before and during the crisis. In Slovakia and the Czech Republic our results suggest that firms were more constrained during the crisis and their financing constraints did not largely improve after the end of financial crisis. We argue that economic recession was the driving factor of financing constraints in Slovakia and the Czech Republic.

Keywords: KZ index; credit crunch; financial accelerator; financing constraints; kernel density; non-parametric estimation (search for similar items in EconPapers)
Pages: 18 pages
Date: 2014-12
New Economics Papers: this item is included in nep-sbm and nep-tra
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:wfo:wpaper:y:2014:i:485

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