Credit-constrained in Risky Activities : The Determinants of the Capital Stocks of Micro and Small Firms in Western Africa

Grimm, Michael ; Lange, Simon ; Lay, Jann

Download:

pdf-Format: Dokument 1.pdf (1.034 KB)

Bookmark bei Connotea Bookmark bei del.icio.us

URL http://edoc.vifapol.de/opus/volltexte/2012/3710/
Dokumentart: Bericht / Forschungsbericht / Abhandlung
Institut: GIGA - German Institute of Global and Area Studies
Schriftenreihe: GIGA Working Papers
Bandnummer: 185
Sprache: Englisch
Erstellungsjahr: 2012
Publikationsdatum: 11.03.2012
Originalveröffentlichung: http://www.giga-hamburg.de/dl/download.php?d=/content/publikationen/pdf/wp185_grimm-lange-lay.pdf (2012)
SWD-Schlagwörter: Westafrika , Kreditgewährung , Klein- und Mittelbetrieb
DDC-Sachgruppe: Politik
BK - Basisklassifikation: 85.30 (Investition, Finanzierung), 83.50 (Geld, Inflation, Kapitalmarkt)
Sondersammelgebiete: 3.6 Politik und Friedensforschung

Kurzfassung auf Englisch:

Micro and small enterprises (MSEs) in developing countries are typically considered to be severely credit constrained. Additionally, high business risks may partly explain why the capital stocks of MSEs remain low. This article analyzes the determinants of the capital stocks of MSEs in poor economies focusing on credit constraints and risk. The analysis is based on a unique, albeit cross‐sectional but backward‐looking, micro data set on MSEs covering the economic capitals of seven West‐African countries. The main result is that capital market imperfections indeed seem to explain an important part of the variation in capital stocks in the early lifetime of MSEs. Furthermore, the analyses show that risk plays a key role in capital accumulation. Risk‐averse individuals seem to adjust their initially low capital stocks upwards when enterprises grow older. MSEs in risky activities owned by wealthy individuals even seem to over‐invest when they start their business and subsequently adjust capital stocks downwards. As other firms simultaneously suffer from capital shortages, such behaviour may imply large inefficiencies.


Zugriffsstatistik
(Anzahl Downloads)

keine Statistikdaten vorhanden

eDoc.ViFaPol ist in BASE recherchierbar:
BASE

Wir unterstützen Open Access:
Informationsplattform Open Access

zum Seitenanfang