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Access to finance and funding composition during the crisis: A firm-level analysis of Latin American countries

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  • Sandra M. Leitner
  • Robert Stehrer

Abstract

This paper describes the effects of the 2009 global financial crisis on firms' access to financing for investment projects. The analysis uses data from the Latin American and Caribbean Enterprise Surveys 2006 and 2010, demonstrating that during the crisis, the availability of internal sources was crucial for larger and foreign-owned firms or firms that were part of a group, while state-owned firms did not enjoy any financial privileges. Firms sought greater bank and supply-chain financing, larger firms used less internal funds, foreign firms relied more on internal funds, while firms that export and import used bank credits more intensively.

Suggested Citation

  • Sandra M. Leitner & Robert Stehrer, 2013. "Access to finance and funding composition during the crisis: A firm-level analysis of Latin American countries," Latin American Journal of Economics-formerly Cuadernos de Economía, Instituto de Economía. Pontificia Universidad Católica de Chile., vol. 50(1), pages 1-47, May.
    • Handle: RePEc:ioe:cuadec:v:50:y:2013:i:1:p:1-47
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    Cited by:

    1. Halil Dincer Kaya, 2023. "The Impact Of The 2008-2009 Global Crisis On Retailers’ And Core Industry Firms’ Loan Applications," Annals - Economy Series, Constantin Brancusi University, Faculty of Economics, vol. 1, pages 16-24, February.
    2. Halil D. Kaya, 2023. "The Impact Of The 2008-2009 Global Crisis On Retailers’ And Core Industry Firms’ Loan Applications: The Case Of Eastern Europe And Central Asia," Annals - Economy Series, Constantin Brancusi University, Faculty of Economics, vol. 4, pages 5-12, August.
    3. Sandra M. Leitner & Robert Stehrer, 2015. "What Determines SMEs’ Funding Obstacles to Bank Loans and Trade Credits?," wiiw Working Papers 114, The Vienna Institute for International Economic Studies, wiiw.
    4. Shakib, Mohammed & Sohag, Kazi & Hassan, M. Kabir & Vasilyeva, Rogneda, 2023. "Finance and export diversifications Nexus in Russian regions: Role of trade globalization and regional potential," Emerging Markets Review, Elsevier, vol. 57(C).
    5. Athenia Bongani Sibindi, 2018. "Determinants of Bank Capital Structure: Evidence from South Africa," Acta Universitatis Danubius. OEconomica, Danubius University of Galati, issue 14(5), pages 108-126, OCTOBER.
    6. Selçuk Balı & Mete Güler, 2016. "The Impacts of The Global Financial Crisis on Latin American Countries," Eurasian Business & Economics Journal, Eurasian Academy Of Sciences, vol. 4(4), pages 1-10, February.
    7. Christopher M. Durugbo & Zainab Al-Balushi, 2023. "Supply chain management in times of crisis: a systematic review," Management Review Quarterly, Springer, vol. 73(3), pages 1179-1235, September.
    8. Mohammed Shakib, 2023. "Innovation-Export Diversification Nexus in Russian Regions: Does Trade Globalization, Business Potential and Geopolitics Matter?," Journal of Applied Economic Research, Graduate School of Economics and Management, Ural Federal University, vol. 22(4), pages 932-974.

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    More about this item

    Keywords

    Financial crisis; access to financing; capital structure; firm-level analysis; Latin America;
    All these keywords.

    JEL classification:

    • G01 - Financial Economics - - General - - - Financial Crises
    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions
    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • L16 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Industrial Organization and Macroeconomics; Macroeconomic Industrial Structure

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