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This paper presents a switching regression model of investment decision where the probability of a firm facing financial constraint is endogenously determined. The approach, therefore, obviates the use of a priori criteria to exogenously identify the financially constrained firms, and thereby...
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Most often, the competition authorities approve combinations based on the tradeoff between the expected efficiency gains and the likely effect on market power creation. However, the realities may be different from the expected synergy creation since merger regulations are ex ante in nature. The...
Persistent link: https://www.econbiz.de/10010529467
' productivity and technology transfer. We ask the following research questions: First, what is the nature of the relationship … between political connection and productivity, and does this relationship explain firms' productivity and innovation efforts … negative effects on their total factor productivity and research and development expenditure from their political connections …
Persistent link: https://www.econbiz.de/10014251001
A quantitative framework of firm dynamics is developed where the size of the informal sector is determined by financial constraints and the burden of taxation. Improving access to credit for formal sector firms increases aggregate TFP and output while reducing the size of the informal sector....
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The importance of SMEs in any economy cannot be overlooked as they form a major chunk in the economic activity of nations. India has nearly three million SMEs, which account for almost 50 per cent of industrial output. However, SMEs which form the backbone of industrial development in India are...
Persistent link: https://www.econbiz.de/10005837390