Clarke, George R.G.Cull, RobertKisunko, Gregory2012-04-272012-04-272012-04https://hdl.handle.net/10986/6053Two data sets are used to study how country and firm characteristics affected firms' financial constraints and their likelihood of survival during the early phase of the recent global financial crisis in Eastern Europe and Central Asia, a region that was especially hard hit. The first data source provides information on the reported severity of financial constraints for 360 firms from 23 countries in 2002, 2005, and 2008. By following the same firms over time, the study summarizes both the gradual easing of financial constraints from 2002 to 2005 and their tightening during the crisis. Key findings are that financial constraints during the crisis were less severe in countries with well-established foreign banks (entered prior to year 2000), and that changes in the severity of financial constraints were more pronounced for large firms than others during the crisis (although large firms continued to have less severe constraints on average). The second data source provides information on whether firms remained in operation in 2009 in six countries in Eastern Europe and Central Asia. Controlling for other relevant characteristics, firms were more likely to survive the crisis if they had access to external credit.CC BY 3.0 IGOACCESS TO BANKACCESS TO CREDITACCESS TO EXTERNAL FINANCEACCESS TO FINANCEACCESS TO FINANCIAL SERVICESACCESS TO FINANCINGADVANCED ECONOMIESAFFILIATEAFFILIATESAPPLICATION PROCEDURESBANK ACCOUNTBANK ACTIVITYBANK ASSETBANK CREDITBANK FINANCINGBANK FOR INTERNATIONAL SETTLEMENTSBANK INTERMEDIATIONBANK LENDINGBANK LOANSBANK OF KOREABANK POLICYBANKING ASSETSBANKING CRISISBANKING SECTORBANKING SECTOR ASSETSBANKING SECTORSBANKING SYSTEMBANKRUPTCYBARRIERS TO ENTRYBORROWERBORROWINGBRANCHBRANCHESBRIBESBUSINESS CYCLESBUSINESS ENVIRONMENTCAPITAL FLOWSCAPITAL MARKETSCENTRAL BANKCHECKSCOLLATERALCOLLATERAL REQUIREMENTSCOMPETITORSCORPORATE FINANCINGCORRUPTIONCREDIT CONSTRAINTSCREDIT CRUNCHCREDIT GROWTHCREDIT MARKETSCREDIT PROVISIONCROSS-BORDER FLOWSCURRENCYCURRENCY COMPOSITIONCURRENT ACCOUNTCURRENT ACCOUNT DEFICITCURRENT ACCOUNT DEFICITSDEFERRED PAYMENTDEFICITSDEPENDENTDEVELOPING COUNTRIESDOMESTIC BANKDOMESTIC BANKSDUMMY VARIABLEDUMMY VARIABLESECONOMIC CRISISECONOMIC DEVELOPMENTECONOMIC GROWTHECONOMIC POLICYECONOMIES IN TRANSITIONEMERGING MARKETEMERGING MARKET ECONOMIESEMERGING MARKETSEMPLOYMENTEMPLOYMENT GROWTHENTERPRISE PERFORMANCEEXCHANGE RATEEXCHANGE RATESEXCLUSIONEXPORTERSEXTERNAL BORROWINGEXTERNAL CREDITEXTERNAL FINANCEEXTERNAL FINANCINGEXTERNAL FUNDINGEXTERNAL FUNDSFEDERAL RESERVEFEDERAL RESERVE BANKFEDERAL RESERVE BANK OF BOSTONFEDERAL RESERVE BANK OF NEW YORKFINANCIAL ACCESSFINANCIAL CONSTRAINTSFINANCIAL CRISESFINANCIAL CRISISFINANCIAL GLOBALIZATIONFINANCIAL INSTITUTIONFINANCIAL INSTITUTIONSFINANCIAL INTEGRATIONFINANCIAL INTERMEDIATIONFINANCIAL MARKETSFINANCIAL SERVICESFINANCIAL SHOCKFINANCIAL SITUATIONFINANCIAL STATEMENTFINANCIAL STATEMENTSFINANCIAL SUPPORTFINANCING CONSTRAINTSFINANCING OBSTACLESFIRM PERFORMANCEFIRM SIZEFIRMSFIXED ASSETSFIXED EXCHANGE RATESFIXED INVESTMENTFLOATING EXCHANGE RATEFLOATING EXCHANGE RATESFOREIGN BANKFOREIGN BANK ENTRYFOREIGN BANK PARTICIPATIONFOREIGN BANKSFOREIGN CLAIMSFOREIGN OWNERSHIPFORMAL BANKINGFORMAL BANKING SYSTEMHOLDINGHOME MARKETSHOST COUNTRIESHOST COUNTRYHOUSEHOLDSIMMEDIATE PAYMENTINFLATIONINFORMATIONAL ASYMMETRIESINSOLVENCYINSOLVENCY GROUPINSOLVENTINSTITUTIONAL DEVELOPMENTINSTRUMENTINTANGIBLEINTANGIBLE BENEFITSINTEREST RATESINTERNAL FINANCEINTERNAL FUNDSINTERNATIONAL BANKINTERNATIONAL BANKSINTERNATIONAL CAPITALINTERNATIONAL CAPITAL FLOWSINTERNATIONAL FINANCIAL INSTITUTIONSINTERNATIONAL LENDINGINVESTMENT CLIMATEINVESTMENT DECISIONSINVESTMENT OPPORTUNITIESLARGE FIRMLARGE FIRMSLEGAL CONSTRAINTSLEGAL ORIGINLENDERLENDERSLENDING POLICIESLEVEL OF COMMITMENTLEVERAGELIABILITYLICENSINGLINE OF CREDITLINES OF CREDITLIQUIDATIONLIQUIDITYLIQUIDITY PROBLEMSLOANLOAN APPLICANTSLOAN APPLICATIONLOAN APPLICATIONSMANUFACTURERSMATURITYMEDIUM ENTERPRISESMORTGAGEMORTGAGE MARKETMULTINATIONALMULTINATIONAL BANKMULTINATIONAL BANKSOBSTACLES TO GROWTHOVERDRAFTOVERDRAFT FACILITIESOVERDRAFT FACILITYOVERDRAFTSPARTYPOSITIVE COEFFICIENTPRIVATE BORROWERSPRIVATE CAPITALPROFIT OPPORTUNITIESPROFITABILITYPROPERTY RIGHTSPROTECTION OF PROPERTYPUBLIC-PRIVATE PARTNERSHIPRATE OF RETURNREAL SECTORRETAINED EARNINGSRETURNRETURN ON ASSETSRETURN ON SALESRISKY LOANSSALES GROWTHSMALL BUSINESSSMALL FIRMSSOURCES OF FINANCESTATE BANKSSUBSIDIARIESSUBSIDIARYSUPPLIERSSYSTEMIC CRISESTAXTAX ADMINISTRATIONTAX RATESTRANSPORTUNIONWORKING CAPITALWORLD FINANCIAL MARKETSWorld Bank10.1596/1813-9450-6050