How Important Are Financing Constraints? The Role of Finance in the Business Environment

What role does the business environment play in promoting and restraining firm growth? Recent literature points to a number of factors as obstacles to growth. Inefficient functioning of financial markets, inadequate security and enforcement of property rights, poor provision of infrastructure, ineff...

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Bibliographic Details
Main Authors:	Ayyagari, Meghana, Demirgüç-Kunt, Asli, Maksimovic, Vojislav
Format:	Policy Research Working Paper
Language:	English en_US
Published:	World Bank, Washington, DC 2012
Subjects:	ABSOLUTE VALUE ACCESS TO CREDIT ACCESS TO EXTERNAL FINANCE ACCESS TO FINANCING ACCOUNTING BANK EQUITY BANK PAPERWORK BANK POLICY BIASES BINDING CONSTRAINT BINDING CONSTRAINTS BORROWING BUSINESS ENVIRONMENT BUSINESS ENVIRONMENTS CHECKS COLLATERAL COLLATERAL REQUIREMENTS COMMON LAW COMPETITORS CORRUPTION COUNTRY DUMMIES COUNTRY FIXED EFFECT COUNTRY FIXED EFFECTS COUNTRY LEVEL COUNTRY REGRESSIONS COUNTRY-LEVEL INDICATORS DEMAND FOR CAPITAL DEPENDENT VARIABLE DEVELOPING COUNTRIES DEVELOPMENT ECONOMICS DUMMY VARIABLE DUMMY VARIABLES ECONOMIC DEVELOPMENT ECONOMIC GROWTH ECONOMIC IMPACT EMPLOYMENT ENTREPRENEURS EQUIPMENT ERROR TERM ESTIMATED COEFFICIENTS EXCHANGE RATE EXCHANGE RATES EXCLUSION EXPANSION EXPLANATORY VARIABLES EXPORTER EXTERNAL FINANCE EXTERNAL FINANCING FARMERS FINANCE ACCESS FINANCIAL DEVELOPMENT FINANCIAL INFORMATION FINANCIAL INSTITUTIONS FINANCIAL INTERMEDIATION FINANCIAL MARKETS FINANCIAL OBSTACLE FINANCIAL OBSTACLES FINANCIAL POLICIES FINANCIAL SECTOR FINANCIAL SECTOR REFORM FINANCIAL SECTOR REFORMS FINANCIAL STUDIES FINANCIAL SYSTEM FINANCIAL SYSTEMS FINANCING OBSTACLE FINANCING OBSTACLES FIRM GROWTH FIRM PERFORMANCE FIRM SIZE FIRM SIZES FOREIGN BANKS FOREIGN EXCHANGE FOREIGN FIRMS FOREIGN OWNERSHIP GOVERNMENT OWNERSHIP GOVERNMENT POLICIES GROWTH LITERATURE GROWTH OPPORTUNITIES GROWTH RATE GROWTH RATES GROWTH REGRESSION GROWTH REGRESSIONS HIGH GROWTH HIGH GROWTH RATE HIGH INCOME COUNTRIES HIGH INFLATION HIGH INTEREST RATE HIGH INTEREST RATES INCOME INCOME GROUP INCOME GROUPS INCOME LEVEL INCOME LEVELS INDEPENDENT VARIABLES INDIVIDUAL COUNTRIES INDIVIDUAL FIRM INDIVIDUAL FIRMS INFLATION INFLATION RATES INFLATION TAX INSTITUTIONAL DEVELOPMENT INSTRUMENT INTEREST RATE INTEREST RATES INTERNATIONAL ACCOUNTING STANDARDS INVESTMENT CLIMATE JUDICIAL EFFICIENCY LACK OF ACCESS LATIN AMERICAN LEASING LEGAL CONSTRAINTS LEGAL ENFORCEMENT LEGAL SYSTEMS LICENSING LIMITED ACCESS LOAN LONG-TERM CAPITAL LONG-TERM LOANS MACROECONOMIC INSTABILITY MACROECONOMIC POLICIES MACROECONOMIC STABILITY MEAN VALUE MONETARY ECONOMICS NEGATIVE EFFECT NEGATIVE IMPACT NONPAYMENT 0 HYPOTHESIS OBSTACLES TO GROWTH OUTPUT PERFORMANCE MEASURES POLICY IMPLICATIONS POLICY RESEARCH PRIVATE SECTOR DEVELOPMENT PROPERTY RIGHTS PROPERTY RIGHTS PROTECTION REFORM EFFORTS RELATIVE IMPORTANCE SALES GROWTH SIGNIFICANT IMPACT SMALL FIRMS STANDARD DEVIATION SUB-SAHARAN AFRICA TAX TAXATION TRANSACTION TRANSITION COUNTRIES TRANSITION ECONOMIES TRINIDAD AND TOBAGO
Online Access:	http://documents.worldbank.org/curated/en/2006/01/9836091/important-financing-constraints-role-finance-business-environment http://hdl.handle.net/10986/8998