Investment and financial constraints in transition economies: micro evidence from Poland, the Czech Republic, Bulgaria and Romania

By Jozef Konings, Marian Rizov, H. Vandenbussche. 2003

172 citations recorded by the source corpus.

In this paper we investigate to what extent firm investment in transition countries is sensitive to internal finance. We use accounts data of over 4000 companies in four countries at different stages of transition. We find that firms in Bulgaria and Romania are less sensitive to internal financing constraints, in contrast to firms in Poland and the Czech Republic. A likely explanation is that Bulgaria and Romania, which are the least advanced in the reforms towards market economy, have a stronger persistence of soft budget constraints than in the other two more advanced countries.

Subfields: Accounting, Finance, Political Science and International Relations

View Paper: https://www.semanticscholar.org/paper/64b627438a2a7fa755ea5ee17e6f6b2910126dbf

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Citations in the corpus

Does access to credit improve productivity ? Evidence from Bulgarian firms (2006, unknown): “However, Konings et al. (2003) use the same methodology and find that Bulgarian firms are less financially constrained than firms in Poland and the Czech Republic (and explain this finding with the presence of soft budget constraints rather than better market efficiency).”
Firm Growth and Liquidity Constraints: A Dynamic Analysis (2006, background): “As Konings et al. (2003) and Budina et al. (2000) show this appears to be the case of the European Union.”
A balancing act: Managing financial constraints and agency costs to minimize investment inefficiency in the Chinese market (2016, methodology): “43 We use the growth of real sales (SGRi,t-1) instead of Tobin’s Q to proxy for investment opportunities (Konings et al. 2003; Ding et al. 2010).”
The Dynamic Adjustment Towards Target Capital Structures of Firms in Transition Economies (2006, background): “18 Budina et al. (2000), Everaert and Hildebrandt (2003), Konings et al. (2003) and Konings and Vandenbussche (2004).”
Financial factors and exporting decisions (2007, background): “, 2003; Benito, 2005); for other European countries (Vermeulen, 2002; Angeloni et al., 2003; Bond et al., 2003; Chatelain et al., 2003; Konings et al., 2003); for Japan (Hoshi et al.”
Small and medium enterprises : a cross-country analysis with a new data set (2011, background): “Studies by Anderson and Kegels (1997), Budina et al. (2000), Gros and Suhrcke (2000), Konings et al. (2003) all indicate that this appears to be the case in most of Central and Eastern Europe.”
Comparing the Impact of Credit Constraints on the Growth of SMEs in a Transition Country with an Established Market Economy (2006, background): “The industrial landscape at the start of the transition period in Central and Eastern Europe (CEE) consisted of large, inefficient and vertically integrated state owned firms.”
Chinese firms' political connection, ownership, and financing constraints (2012, background): “Konings et al. (2003) find that firms in Bulgaria and Romania, the two “slow reformers”, are less sensitive to internal financing constraints than firms in Poland and the Czech Republic, the two “fast reformers”.”
Financial Constraints in China: Firm-Level Evidence (2010, unknown): “Our work is related to the existing literature on capital market imperfections and firm investment in transition and developing economies (see Konings et al. (2003), Lizal and Svejnar (2002) and Harrison and McMillan (2003)).”