Does direct foreign investment affect domestic credit constraints?

• 成果类型: Article
• 署名作者: Harrison, AE; McMillan, MS
• 署名单位: University of California System; University of California Berkeley; Tufts University
• 刊物名称: JOURNAL OF INTERNATIONAL ECONOMICS
• ISSN/ISSBN: 0022-1996
• DOI: 10.1016/S0022-1996(02)00078-8
• 发表日期: 2003
• 页码: 73-100
• 关键词: foreign direct investment; credit constraints

摘要

Firms in developing countries cite credit constraints as one of their primary obstacles to investment. Direct foreign investment may ease credit constraints by bringing in scarce capital. Alternatively, if foreign firms borrow heavily from domestic banks, they may crowd local firms out of domestic capital markets. Using firm data from the Ivory Coast, we test whether: (1) domestic firms are more credit constrained than foreign firms, and (2) whether borrowing by foreign firms exacerbates domestic firm credit constraints. Results provide support for both hypotheses. We also find that state-owned enterprises (SOEs) are less financially constrained than other domestic enterprises. (C) 2002 Published by Elsevier B.V.