Investing Into Their People-The Role of Credit Constraints on Firms' Human Capital Investment in Emerging Market Economies

Released on by Yangyang Hua
preview-18

  • Investing Into Their People-The Role of Credit Constraints on Firms' Human Capital Investment in Emerging Market Economies Book Detail

  • Author : Yangyang Hua
  • Release Date : 2014
  • Publisher :
  • Genre : Education
  • Pages : 80
  • ISBN 13 :
  • File Size : 2,2 MB
DOWNLOAD BOOK

Investing Into Their People-The Role of Credit Constraints on Firms' Human Capital Investment in Emerging Market Economies by Yangyang Hua PDF Summary

Book Description: In today's rapid changing market, a well-trained work force is the key to provide firms with a competitive edge through incorporation of productivity and creativity. However, in emerging market economies, the provision of on-the-job training varies greatly across firms. Drawing on a standardized data set from the World Enterprise Survey for 7467 manufacturing firms in 9 emerging market economies and using probit models, this paper explores how financial constraints affect investment in human capital. Specifically, the paper presents evidence that a financially constrained firm has approximately a 14 percent lower probability of offering training to its work force compared with a non-constrained firm. In addition, credit constraints seem to matter more for private SMEs. Since inefficient firms may overstate the negative effect of credit constraints on their operations, a proxy variable to measure the degree of the political connectedness of the firm is used as an instrumental variable for credit constraints. My thesis findings suggest that improving the overall business environment and financial institutions would be a key measure to facilitate the growth of firms and that government should make it a long-term policy priority to expand access to education.

Disclaimer: www.yourbookbest.com does not own Investing Into Their People-The Role of Credit Constraints on Firms' Human Capital Investment in Emerging Market Economies books pdf, neither created or scanned. We just provide the link that is already available on the internet, public domain and in Google Drive. If any way it violates the law or has any issues, then kindly mail us via contact us page to request the removal of the link.

Investment in Education

Investment in Education

File Size : 66,66 MB
Total View : 6397 Views
DOWNLOAD

The focus of this paper is the link between income volatility and the accumulation of human capital in the presence of credit constraints. Also, the effect of i