Finance and Employment in Developing Countries : The Working Capital Channel /

We study the effect of external financing constraint on job creation in emerging markets and developing countries (EMDC) at the firm level by looking at a specific transmission channel - the working capital channel. We develop a simple model to illustrate how the need for working capital financing o...

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Hlavní autor: Dao, Mai Chi
Další autoři: Liu, Lucy Qian
Médium: Časopis
Jazyk:English
Vydáno: Washington, D.C. : International Monetary Fund, 2017.
Edice:IMF Working Papers; Working Paper ; No. 2017/189
On-line přístup:Full text available on IMF
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245 1 0 |a Finance and Employment in Developing Countries :   |b The Working Capital Channel /  |c Mai Chi Dao, Lucy Qian Liu. 
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490 1 |a IMF Working Papers 
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500 |a <strong>On-Campus Access:</strong> No User ID or Password Required 
506 |a Electronic access restricted to authorized BRAC University faculty, staff and students 
520 3 |a We study the effect of external financing constraint on job creation in emerging markets and developing countries (EMDC) at the firm level by looking at a specific transmission channel - the working capital channel. We develop a simple model to illustrate how the need for working capital financing of a firm affects the link between financial constraint and the firm's job creation. We show that the effect of relaxing financial constraint on job creation is greater the smaller the firm scale and the more labor-intensive its production structure. We use the World Bank Enterprise Surveys data to test the main predictions of the model, and find strong evidence for the working capital channel of external finance on firm employment. 
538 |a Mode of access: Internet 
700 1 |a Liu, Lucy Qian. 
830 0 |a IMF Working Papers; Working Paper ;  |v No. 2017/189 
856 4 0 |z Full text available on IMF  |u http://elibrary.imf.org/view/journals/001/2017/189/001.2017.issue-189-en.xml  |z IMF e-Library