Finance Constraint and Firm Investment: A Survey of Econometric Methodology

Pranab Kumar Das

Abstract


It is well established in the macro-finance literature that finance is a crucial factor in the growth process via capital formation, hence the importance of finance constraint in the theory of investment. The issue is particularly important in the emerging market economies which are considered as southern engines of global growth. A very large empirical literature has emerged to test the hypothesis of finance constrained investment since the publication of the seminal paper of Fazzari, Hubbard and Petersen in 1988. The present paper is a survey of the literature. The paper in particular covers the studies on India which as one of the emerging market economies has recently attained its crucial importance for global growth. The paper also provides new research methodology to fill the lacunae in the existing literature.


Full Text: PDF DOI: 10.5430/afr.v3n2p138

Refbacks

  • There are currently no refbacks.


Creative Commons License
This work is licensed under a Creative Commons Attribution 3.0 License.

Accounting and Finance Research
ISSN 1927-5986 (Print)   ISSN 1927-5994 (Online)

Copyright © Sciedu Press

To make sure that you can receive messages from us, please add the 'Sciedu.ca' domain to your e-mail 'safe list'. If you do not receive e-mail in your 'inbox', check your 'bulk mail' or 'junk mail' folders.