Credit Demand in Mozambican Manufacturing

Journal of International Development (Impact Factor: 22(1):37-55. DOI: 10.1002/jid.1558 (2010)

Posted: 13 Dec 2014

See all articles by John Rand

John Rand

University of Copenhagen - Department of Economics

Finn Tarp

University of Copenhagen - Department of Economics

Bruce Byiers

Independent

Jeanet Sinding Bentzen

University of Copenhagen - Department of Economics

Date Written: January 2010

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.

Note: Copyright © 2009 John Wiley & Sons, Ltd.

Suggested Citation

Rand, John and Tarp, Finn and Byiers, Bruce and Bentzen, Jeanet, Credit Demand in Mozambican Manufacturing (January 2010). Journal of International Development (Impact Factor: 22(1):37-55. DOI: 10.1002/jid.1558 (2010). Available at SSRN: https://ssrn.com/abstract=2537339

John Rand

University of Copenhagen - Department of Economics ( email )

Øster Farimagsgade 5
Bygning 26
1353 Copenhagen K.
Denmark

Finn Tarp (Contact Author)

University of Copenhagen - Department of Economics ( email )

Øster Farimagsgade 5
Bygning 26
1353 Copenhagen K.
Denmark

Bruce Byiers

Independent ( email )

No Address Available

Jeanet Bentzen

University of Copenhagen - Department of Economics ( email )

Øster Farimagsgade 5
Bygning 26
1353 Copenhagen K.
Denmark

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