Ganau, Roberto and Rodríguez-Pose, Andrés ORCID: 0000-0002-8041-0856 (2022) Credit constraints in European SMEs: does regional institutional quality matter? Applied Economics Letters, 29 (15). pp. 1388-1392. ISSN 1350-4851
Text (Applied Economic Letters 2021 WP version)
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Abstract
We analyse the investment-to-cash flow relationship in Europe using a sample of manufacturing small- and medium-sized enterprises (SME) over the period 2009–2016. We investigate the effect of regional institutional quality on the investment-to-cash flow sensitivity, finding that, although credit constraints remain a serious problem for European SMEs, high-quality regional institutions contribute to mitigate the dependency on internally-generated resources to finance new investments. Improvements in local institutional quality can therefore facilitate SMEs’ access to credit–e.g. through inter-firm trade credit relationships –, but are insufficient to overcome the credit restrictions faced by European SMEs.
Item Type: | Article |
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Official URL: | https://www.tandfonline.com/toc/rael20/current |
Additional Information: | © 2021 Informa UK Limited, trading as Taylor & Francis Group |
Divisions: | Geography & Environment |
Subjects: | H Social Sciences > HG Finance H Social Sciences > HD Industries. Land use. Labor |
JEL classification: | C - Mathematical and Quantitative Methods > C2 - Econometric Methods: Single Equation Models; Single Variables > C23 - Models with Panel Data R - Urban, Rural, and Regional Economics > R5 - Regional Government Analysis > R50 - General |
Date Deposited: | 22 Oct 2021 17:33 |
Last Modified: | 02 Nov 2024 05:21 |
URI: | http://eprints.lse.ac.uk/id/eprint/112487 |
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