REGULAR ARTICLE
Access to credit and investment decisions of small- and medium-sized enterprises in China
Paulo José Regis,
Corresponding Author
Paulo José Regis
Xi'an Jiaotong—Liverpool University, People's Republic of China
Correspondence
Paulo José Regis, BB440, Business Building, Xi'an Jiaotong—Liverpool University, 111, Ren'ai Road, Dushu Lake Higher Education Town, SIP, Suzhou 215123, P. R. China.
Email: [email protected]
Search for more papers by this authorPaulo José Regis,
Corresponding Author
Paulo José Regis
Xi'an Jiaotong—Liverpool University, People's Republic of China
Correspondence
Paulo José Regis, BB440, Business Building, Xi'an Jiaotong—Liverpool University, 111, Ren'ai Road, Dushu Lake Higher Education Town, SIP, Suzhou 215123, P. R. China.
Email: [email protected]
Search for more papers by this authorAbstract
Financial constraints are common in developing countries where financial systems are underdeveloped. In China, firms report that access to finance is the most important obstacle in the business environment. This is related to firms that fail to gain access to the credit market. We examine the likelihood of gaining access to credit by firms, and find that size and exporting appear to be the key characteristics. Credit constraints are significant for investment decisions. Together with size, access to credit is among the firm characteristics with the greatest impact on the likelihood to invest.
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