Releasing Constraints to Growth or Pushing on a String? Policies and Performance of Mexican Micro-firms
Using firm-level data from Mexico, this paper investigates the firm characteristics associated with participation in credit markets, access to training, tax payments, and membership in business associations. We find that firms which participate in these institutions exhibit significantly higher prof...
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| Format: | Journal Article |
| Language: | EN |
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2012
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| Online Access: | http://hdl.handle.net/10986/5710 |
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okr-10986-57102021-04-23T14:02:23Z Releasing Constraints to Growth or Pushing on a String? Policies and Performance of Mexican Micro-firms Fajnzylber, Pablo Maloney, William F. Montes-Rojas, Gabriel V. Financing Policy Financial Risk and Risk Management Capital and Ownership Structure G320 Firm Performance: Size, Diversification, and Scope L250 Entrepreneurship L260 Economic Development: Financial Markets Saving and Capital Investment Corporate Finance and Governance O160 Using firm-level data from Mexico, this paper investigates the firm characteristics associated with participation in credit markets, access to training, tax payments, and membership in business associations. We find that firms which participate in these institutions exhibit significantly higher profits. Moreover, firms that borrow from formal or informal sources and those that pay taxes are significantly more likely to stay in business but firms that received credit exhibit lower rates of income growth. These results persist when firm characteristics that are arguably correlated with unobserved entrepreneurial ability are controlled for. Our findings suggest that the significant within-country differences in firm productivity observed in developing economies are due in part to market and government failures that limit the ability of micro-firms to reach their optimal sizes. 2012-03-30T07:34:09Z 2012-03-30T07:34:09Z 2009 Journal Article Journal of Development Studies 00220388 http://hdl.handle.net/10986/5710 EN http://creativecommons.org/licenses/by-nc-nd/3.0/igo World Bank Journal Article Mexico |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
EN |
| topic |
Financing Policy Financial Risk and Risk Management Capital and Ownership Structure G320 Firm Performance: Size, Diversification, and Scope L250 Entrepreneurship L260 Economic Development: Financial Markets Saving and Capital Investment Corporate Finance and Governance O160 |
| spellingShingle |
Financing Policy Financial Risk and Risk Management Capital and Ownership Structure G320 Firm Performance: Size, Diversification, and Scope L250 Entrepreneurship L260 Economic Development: Financial Markets Saving and Capital Investment Corporate Finance and Governance O160 Fajnzylber, Pablo Maloney, William F. Montes-Rojas, Gabriel V. Releasing Constraints to Growth or Pushing on a String? Policies and Performance of Mexican Micro-firms |
| geographic_facet |
Mexico |
| relation |
http://creativecommons.org/licenses/by-nc-nd/3.0/igo |
| description |
Using firm-level data from Mexico, this paper investigates the firm characteristics associated with participation in credit markets, access to training, tax payments, and membership in business associations. We find that firms which participate in these institutions exhibit significantly higher profits. Moreover, firms that borrow from formal or informal sources and those that pay taxes are significantly more likely to stay in business but firms that received credit exhibit lower rates of income growth. These results persist when firm characteristics that are arguably correlated with unobserved entrepreneurial ability are controlled for. Our findings suggest that the significant within-country differences in firm productivity observed in developing economies are due in part to market and government failures that limit the ability of micro-firms to reach their optimal sizes. |
| format |
Journal Article |
| author |
Fajnzylber, Pablo Maloney, William F. Montes-Rojas, Gabriel V. |
| author_facet |
Fajnzylber, Pablo Maloney, William F. Montes-Rojas, Gabriel V. |
| author_sort |
Fajnzylber, Pablo |
| title |
Releasing Constraints to Growth or Pushing on a String? Policies and Performance of Mexican Micro-firms |
| title_short |
Releasing Constraints to Growth or Pushing on a String? Policies and Performance of Mexican Micro-firms |
| title_full |
Releasing Constraints to Growth or Pushing on a String? Policies and Performance of Mexican Micro-firms |
| title_fullStr |
Releasing Constraints to Growth or Pushing on a String? Policies and Performance of Mexican Micro-firms |
| title_full_unstemmed |
Releasing Constraints to Growth or Pushing on a String? Policies and Performance of Mexican Micro-firms |
| title_sort |
releasing constraints to growth or pushing on a string? policies and performance of mexican micro-firms |
| publishDate |
2012 |
| url |
http://hdl.handle.net/10986/5710 |
| _version_ |
1764396039591165952 |