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The effect of credit on growth and convergence of firms in Kenyan manufacturing

Abstract:

Although some recent studies have analysed issues relating to credit in African manufacturing, they have not directly tested for the effect of credit on firm growth. The use of bank credit can affect firm growth in two opposite ways. The effect may be positive if credit allows a firm to address its liquidity constraint and increase profitability. However, if macroeconomic shocks such as increases in interest rates make firm debts unsustainable as experienced in Kenya in the 1990s, indebted fi...

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Publisher:
CSAE (University of Oxford)
Series:
Working Paper Series
Publication date:
2005-01-01
Language:
English
UUID:
uuid:8aa683e3-ea46-46b2-a0bb-be545d347c07
Local pid:
oai:economics.ouls.ox.ac.uk:13242
Deposit date:
2011-08-16

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