This paper aims at assessing the relationship between the possible existence of financial constraints and the decisions of Belgian private firms as regards their investments in both capital and R&D investments over the last decade. The main system GMM estimates from the error-correction...

This paper explores the existence and importance of financing constraints for R&D investments in large EU and US manufacturing companies over the 2000 – 2007 period. The main results obtained by estimating error-correction equations suggest that the sensitivity of R&D investments to cash flow...

It is often raised that enterprises in transition countries are cursed with credit constraints and insufficient capital. Regardless of whether this belief holds for the whole of the economy, the Agency Theory provides a useful both theoretical and empirical framework helping to verify the...

It is often raised that enterprises in transition countries are cursed with credit constraints and insufficient capital. Regardless of whether this belief holds for the whole of the economy, the Agency Theory provides a useful theoretical as well as empirical framework helping to verify the...

It is often raised that enterprises in transition countries are cursed with credit constraints and insufficient capital. Regardless of whether this belief holds for the whole of the economy, the Agency Theory provides a useful both theoretical and empirical framework helping to verify the...

Investment of French firms remained weak in the first part of the 90's, after allowing for the sluggish economic growth. Macroeconomic models failed to explain this low level. In this work, we examine the link between micro-level data and aggregate fluctuations. We first describe the evolution...

Using a newly constructed panel dataset of German enterprises, I estimate R&D and capital investment equations for the time period from 1990 to 1994. Simple accelerator specifications indicate considerable sensitivity of R&D and investment to cash flow for relatively small firms. Much of this...

The slower productivity growth in Canada relative to that experienced in the United States in the second half of the 1990s has been a matter of great concern to Canadians, with a wide variety of explanations put forward to account for this development. A key issue is whether this slower...

The Tasmaninan Government has recently followed the reputably successful New Brunswick Government of Canada in setting up an industrial strategy to build an information technolgy (IT) industry of significance. The strategy aims to overcome isolation in small region-based economies and...

Over the last few years, a large body of literature has shown that the level of information and communications technology (ICT) diffusion, and, as a result, the favorable effects of this diffusion on productivity, differ greatly between the major advanced countries, with the United States the...