Liquidity Constraints and Firms' Linkages with Multinationals
Using a unique data set on the Czech Republic for 1994–2003, this article examines the relationship between a firm's liquidity constraints and its supply linkages with multinational corporations (MNCs). The empirical analysis indicates that Czech firms supplying multinationals are less credit c...
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| Format: | Journal Article |
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World Bank
2012
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| Online Access: | http://hdl.handle.net/10986/4505 |
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okr-10986-45052021-04-23T14:02:18Z Liquidity Constraints and Firms' Linkages with Multinationals Javorcik, Beata S. Spatareanu, Mariana capital markets company employment firms foreign companies foreign direct investment foreign market foreign markets lenders loan local entrepreneurs MNC multinational multinational corporations multinationals state enterprises suppliers taxation Using a unique data set on the Czech Republic for 1994–2003, this article examines the relationship between a firm's liquidity constraints and its supply linkages with multinational corporations (MNCs). The empirical analysis indicates that Czech firms supplying multinationals are less credit constrained than are nonsuppliers. Closer inspection of the timing of the effect, however, suggests that the result is due to self-selection of less constrained firms into supplying multinationals rather than to the benefits derived from the supplying relationship. As the recent literature finds that productivity spillovers from foreign direct investment (FDI) are most likely to take place through contacts between MNCs and their local suppliers, this finding suggests that well-developed financial markets may be needed to take full advantage of the benefits associated with FDI inflows. 2012-03-30T07:12:38Z 2012-03-30T07:12:38Z 2009-06-30 Journal Article World Bank Economic Review 1564-698X http://hdl.handle.net/10986/4505 CC BY-NC-ND 3.0 IGO http://creativecommons.org/licenses/by-nc-nd/3.0/igo World Bank World Bank Journal Article Europe and Central Asia Czech Republic |
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Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| topic |
capital markets company employment firms foreign companies foreign direct investment foreign market foreign markets lenders loan local entrepreneurs MNC multinational multinational corporations multinationals state enterprises suppliers taxation |
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capital markets company employment firms foreign companies foreign direct investment foreign market foreign markets lenders loan local entrepreneurs MNC multinational multinational corporations multinationals state enterprises suppliers taxation Javorcik, Beata S. Spatareanu, Mariana Liquidity Constraints and Firms' Linkages with Multinationals |
| geographic_facet |
Europe and Central Asia Czech Republic |
| description |
Using a unique data set on the Czech Republic for 1994–2003, this article examines the relationship between a firm's liquidity constraints and its supply linkages with multinational corporations (MNCs). The empirical analysis indicates that Czech firms supplying multinationals are less credit constrained than are nonsuppliers. Closer inspection of the timing of the effect, however, suggests that the result is due to self-selection of less constrained firms into supplying multinationals rather than to the benefits derived from the supplying relationship. As the recent literature finds that productivity spillovers from foreign direct investment (FDI) are most likely to take place through contacts between MNCs and their local suppliers, this finding suggests that well-developed financial markets may be needed to take full advantage of the benefits associated with FDI inflows. |
| format |
Journal Article |
| author |
Javorcik, Beata S. Spatareanu, Mariana |
| author_facet |
Javorcik, Beata S. Spatareanu, Mariana |
| author_sort |
Javorcik, Beata S. |
| title |
Liquidity Constraints and Firms' Linkages with Multinationals |
| title_short |
Liquidity Constraints and Firms' Linkages with Multinationals |
| title_full |
Liquidity Constraints and Firms' Linkages with Multinationals |
| title_fullStr |
Liquidity Constraints and Firms' Linkages with Multinationals |
| title_full_unstemmed |
Liquidity Constraints and Firms' Linkages with Multinationals |
| title_sort |
liquidity constraints and firms' linkages with multinationals |
| publisher |
World Bank |
| publishDate |
2012 |
| url |
http://hdl.handle.net/10986/4505 |
| _version_ |
1764391659410292736 |