The effect of credit rationing on employment

• Κύριος συγγραφέας: Λαμνάτου, Όλγα
• Άλλοι συγγραφείς: Γιαννακόπουλος, Νικόλαος
• Μορφή: Thesis
• Γλώσσα: English
• Έκδοση: 2020
• Θέματα: Credit rationing; Employment; Financial constraints; Firm size; Age; Discouragement; Χρηματοδοτικοί περιορισμοί; Μέγεθος επιχείρησης; Απασχόληση; Χρηματοοικονομικά μεγέθη

This dissertation investigates the influence of credit rationing on employment growth. Using the Survey on the Access to Finance of Enterprises (SAFE), conducted by the European Central Bank (ECB) in cooperation with the European Commission, it is presented that there exists a negative relationship between credit rationing and employment growth. The data refer to the time period 2009-2016 and to 38 euro area and neighbouring countries. The analysis presents demographic characteristics and financial measures of the firms in combination with their financial situation, as well as the purpose of financing of the firms. The results of the probit models, which were constructed, suggest that the main reason for rationing is the discouragement of the potential borrowers and that the negative effect of discouragement is particularly strong on the employment growth (-4.04pp). The estimation results indicate, also, that the small and medium-sized firms with up to 5 years of operation present the highest probabilities of employment growth.