Credit demand in Mozambican manufacturing

✍ Scribed by Bruce Byiers; John Rand; Finn Tarp; Jeanet Bentzen

• Book ID: 102347793
• Publisher: John Wiley and Sons
• Year: 2009
• Tongue: English
• Weight: 137 KB
• Volume: 22
• Category: Article
• ISSN: 0954-1748
• DOI: 10.1002/jid.1558

✦ Synopsis

Abstract

This paper uses two industrial firm surveys to identify the key determinants of credit demand in Mozambican manufacturing. We construct five different measures of being credit constrained and estimate desired debt demand. Besides firm size and ownership structure, we find evidence that general manager education and business association membership are associated with whether a firm is credit constrained or not. Using our preferred measure of credit constraint suggests that around 43 per cent of the firms surveyed are constrained, and these enterprises would almost triple their debt burden if borrowing constraints were relaxed. © 2016 The Authors. Journal of International Development published by John Wiley & Sons, Ltd.