Credit demand in Mozambican manufacturing
Article first published online: 25 FEB 2009
Copyright © 2009 John Wiley & Sons, Ltd.
Journal of International Development
Volume 22, Issue 1, pages 37–55, January 2010
How to Cite
Byiers, B., Rand, J., Tarp, F. and Bentzen, J. (2010), Credit demand in Mozambican manufacturing. J. Int. Dev., 22: 37–55. doi: 10.1002/jid.1558
- Issue published online: 23 DEC 2009
- Article first published online: 25 FEB 2009
- Ministry of Planning and Development (MPD)
- credit demand;
- credit constraints;
This paper uses two industrial firm surveys to identify the key determinants of credit demand in Mozambican manufacturing. We construct five different measures of being credit constrained and estimate desired debt demand. Besides firm size and ownership structure, we find evidence that general manager education and business association membership are associated with whether a firm is credit constrained or not. Using our preferred measure of credit constraint suggests that around 43 per cent of the firms surveyed are constrained, and these enterprises would almost triple their debt burden if borrowing constraints were relaxed. Copyright © 2009 John Wiley & Sons, Ltd.