Competition and financial constraints: A two-sided story
利用东欧和中亚27个新兴经济体的企业调查数据，研究了产品市场竞争压力对信贷需求和供给的双向影响，发现竞争压力增加信贷需求但提高信贷成本，而审计、抵押和出口活动能缓解其负面影响。
This paper examines the relation between competitive pressure and financial constraints using firm-level survey data from 27 emerging economies of Eastern Europe and Central Asia for the years 2005 and 2009. In the empirical analysis, we disentangle the impact of product market competition on the demand and supply of credit. Our results support the hypothesis that competitive pressure on borrowers affects both sides of the credit market. We find that in industries with greater competitive pressure firms' demand for credit is typically higher but a greater proportion of firms are discouraged from loan application due to greater cost of credit. Interestingly, we find the detrimental effect of competitive pressure on credit access breaks down when firms are audited, when they can pledge collateral and when they engage in export activities. These results point to the role of competitive pressure in the lenders' information set when limited information is available.