Journal of Financial Intermediation Vol. 23 No. 1 2014
Credit constraints and investment in human capital: Training evidence from transition economies
Abstract
Using a unique survey database of 8265 firms from 25 transition economies, I find that lack of access to finance in general, and to bank credit in particular, is associated with significantly lower investment in on-the-job training. This effect is stronger in education-intensive industries and in industries facing good global growth opportunities. To address endogeneity issues, I use the structure of local credit markets as an instrument for credit constraints at the firm-level. In addition, in panel estimates, I control for the presence of unobserved firm-level heterogeneity, as well as for changes in macroeconomic conditions.
- DOI
- 10.1016/j.jfi.2013.11.003
- Volume
- 23
- Issue
- 1
- Pages
- 76-100
- Language
- en
- Sources
- bibtex:phds-export.bib openalex crossref