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http://hdl.handle.net/10419/52016
  

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dc.contributor.authorOwolabi, Oluwarotimien_US
dc.contributor.authorPal, Sarmisthaen_US
dc.date.accessioned2011-10-05en_US
dc.date.accessioned2011-11-23T11:42:09Z-
dc.date.available2011-11-23T11:42:09Z-
dc.date.issued2011en_US
dc.identifier.piurn:nbn:de:101:1-201106013883en_US
dc.identifier.urihttp://hdl.handle.net/10419/52016-
dc.description.abstractThe paper argues that networked firms are likely to have an advantage in securing external finance in countries with weak legal and judicial institutions since it helps financial institutions to minimize the underlying agency costs of lending. An analysis of recent BEEPS data from fifteen Central and Eastern European (CEE) countries lends some support to this hypothesis. Even after controlling for other factors, firms affiliated to business associations are more likely to secure bank finance. Importance of being associated with business networks is particularly evident among firms who borrow from private domestic and foreign banks, as these new banks attempt to minimize costs of adverse selection. Networking however discriminates against the small and medium sized firms' access to bank loans in the CEE regions. Results are robust in both single cross-section and panel data analyses.en_US
dc.language.isoengen_US
dc.publisherIZA Bonnen_US
dc.relation.ispartofseriesDiscussion paper series // Forschungsinstitut zur Zukunft der Arbeit 5738en_US
dc.subject.jelG21en_US
dc.subject.jelG30en_US
dc.subject.jelL14en_US
dc.subject.jelM20en_US
dc.subject.jelP21en_US
dc.subject.ddc330en_US
dc.subject.keywordbusiness networksen_US
dc.subject.keywordagency costsen_US
dc.subject.keywordexternal firm financingen_US
dc.subject.keywordbank loansen_US
dc.subject.keywordtransition economiesen_US
dc.subject.keywordendogeneityen_US
dc.titleThe value of business networks in emerging economies: An analysis of firms' external financing opportunitiesen_US
dc.typeWorking Paperen_US
dc.identifier.ppn669374199en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungenen_US
Appears in Collections:IZA Discussion Papers, Forschungsinstitut zur Zukunft der Arbeit (IZA)

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