Credit demand in Mozambican manufacturing

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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.
Original languageEnglish
JournalJournal of International Development
Issue number1
Pages (from-to)37-55
Number of pages19
Publication statusPublished - 2010

ID: 16836545