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

Mickiewicz, Tomasz, Bishop, Kate and Varblane, Urmas (2004). Financial constraints in investment:panel data results from Estonia, 1995–1999. Acta Oeconomica, 54 (4), pp. 425-449.


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.

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Divisions: Aston Business School > Economics finance & entrepreneurship
Uncontrolled Keywords: FDI,Estonia,investment,cash flow,foreign ownership,firm size
Full Text Link: http://www.akad ... 048027337268n9/
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Published Date: 2004-12
Authors: Mickiewicz, Tomasz ( 0000-0001-5261-5662)
Bishop, Kate
Varblane, Urmas

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