Financial constraints in investment: panel data results from Estonia, 1995–1999

Tomasz Mickiewicz, Kate Bishop, Urmas Varblane

Research output: Contribution to journalArticle

Abstract

To investigate investment behaviour the present study applies panel data techniques, in particular the Arellano-Bond (1991) GMM estimator, based on data on Estonian manufacturing firms from the period 1995-1999. We employ the model of optimal capital accumulation in the presence of convex adjustment costs. The main research findings are that domestic companies seem to be financially more constrained than those where foreign investors are present, and also, smaller firms are more constrained than their larger counterparts.
Original languageUndefined/Unknown
Pages (from-to)425-449
Number of pages25
JournalActa Oeconomica
Volume54
Issue number4
DOIs
Publication statusPublished - Dec 2004

Keywords

  • FDI
  • Estonia
  • investment
  • cash flow
  • foreign ownership
  • firm size

Cite this

Mickiewicz, Tomasz ; Bishop, Kate ; Varblane, Urmas. / Financial constraints in investment : panel data results from Estonia, 1995–1999. In: Acta Oeconomica. 2004 ; Vol. 54, No. 4. pp. 425-449.
@article{9606ef7f2e834331a76e097e3dfd0718,
title = "Financial constraints in investment: panel data results from Estonia, 1995–1999",
abstract = "To investigate investment behaviour the present study applies panel data techniques, in particular the Arellano-Bond (1991) GMM estimator, based on data on Estonian manufacturing firms from the period 1995-1999. We employ the model of optimal capital accumulation in the presence of convex adjustment costs. The main research findings are that domestic companies seem to be financially more constrained than those where foreign investors are present, and also, smaller firms are more constrained than their larger counterparts.",
keywords = "FDI, Estonia, investment, cash flow, foreign ownership, firm size",
author = "Tomasz Mickiewicz and Kate Bishop and Urmas Varblane",
year = "2004",
month = "12",
doi = "10.1556/AOecon.54.2004.4.2",
language = "Undefined/Unknown",
volume = "54",
pages = "425--449",
journal = "Acta Oeconomica",
issn = "0001-6373",
publisher = "Akademiai Kiado",
number = "4",

}

Financial constraints in investment : panel data results from Estonia, 1995–1999. / Mickiewicz, Tomasz; Bishop, Kate; Varblane, Urmas.

In: Acta Oeconomica, Vol. 54, No. 4, 12.2004, p. 425-449.

Research output: Contribution to journalArticle

TY - JOUR

T1 - Financial constraints in investment

T2 - panel data results from Estonia, 1995–1999

AU - Mickiewicz, Tomasz

AU - Bishop, Kate

AU - Varblane, Urmas

PY - 2004/12

Y1 - 2004/12

N2 - To investigate investment behaviour the present study applies panel data techniques, in particular the Arellano-Bond (1991) GMM estimator, based on data on Estonian manufacturing firms from the period 1995-1999. We employ the model of optimal capital accumulation in the presence of convex adjustment costs. The main research findings are that domestic companies seem to be financially more constrained than those where foreign investors are present, and also, smaller firms are more constrained than their larger counterparts.

AB - To investigate investment behaviour the present study applies panel data techniques, in particular the Arellano-Bond (1991) GMM estimator, based on data on Estonian manufacturing firms from the period 1995-1999. We employ the model of optimal capital accumulation in the presence of convex adjustment costs. The main research findings are that domestic companies seem to be financially more constrained than those where foreign investors are present, and also, smaller firms are more constrained than their larger counterparts.

KW - FDI

KW - Estonia

KW - investment

KW - cash flow

KW - foreign ownership

KW - firm size

UR - http://www.akademiai.com/content/kt048027337268n9/

U2 - 10.1556/AOecon.54.2004.4.2

DO - 10.1556/AOecon.54.2004.4.2

M3 - Article

VL - 54

SP - 425

EP - 449

JO - Acta Oeconomica

JF - Acta Oeconomica

SN - 0001-6373

IS - 4

ER -