This paper studies exporting and innovative firms investment sensitivity to days receivable outstanding, days payable outstanding, and cash flow which are found to be financial factors determining financing constraints. We also advance and test the idea that export intensity and innovation...

We relax the perfect information assumption in a small open economy with collateral constraints. Under such a condition, households observe income growth but do not perceive whether the underlying shocks are permanent or transitory. Further, the likelihood and severity of financial crises are...

Business plan competitions can be a crucial factor to boost entrepreneurship through mitigating information and credit constraints, but the existing literature does not address that their impacts could go beyond intended beneficiaries. In this paper, I cover this aspect by studying the overall...

Most of the time the budget constraints in the socialist economies were harder than in developing countries and no less hard than in developed countries. The soft budget constraints (SBC) in socialist economies were not pervasive, as most authors believe, but selective, i.e. involved...

In this study, we examine the competitiveness effect of currency depreciation in the presence of external commercial borrowing (ECBs) and low financial development. The estimates of autoregressive distributed lag (ARDL) show the contractionary effects of exchange rate depreciation on exports...

We propose a new methodology to recover firm-time varying financial constraints from firms' production behavior. We model financial constraints as the profitability that firms forgo when budget constraints on production inputs bind, impeding them from using the optimal level of inputs and...