All Rights Reserved
AccessEcon LLC 2006, 2008.
Powered by MinhViet JSC
ralph lauren polo

 
Bizuayehu Bedane
 
''Determinants of Credit Rationing in Ethiopia: Firm-Level Evidence''
( 2016, Vol. 36 No.4 )
 
 
This study examines the determinants of credit rationing at the firm level in Ethiopia using the World Bank Enterprise Survey. A seemingly unrelated bivariate probit model is estimated to control for potential selection bias. The result reveals that in the context of Ethiopia, the age of firm, sales growth, and having checked financial statement by external auditor reduces the probability of being credit rationed. An increase in sales growth lowers the probability of being credit rationed by 21%. Firms that checked their account by external auditor reduces the probability of being rationed by 18.5%. Female ownership, the profitability of the firm, and firm size are insignificant.
 
 
Keywords: Bivariate probit, credit rationing, firms, Ethiopia
JEL:
L2 - Firm Objectives, Organization, and Behavior: General
 
Manuscript Received : Feb 29 2016 Manuscript Accepted : Nov 26 2016

  This abstract has been downloaded 342 times                The Full PDF of this paper has been downloaded 104264 times