Charles Explorer logo
🇬🇧

Financial development and allocation of external finance

Publication at Faculty of Social Sciences, Faculty of Mathematics and Physics, Centre for Economic Research and Graduate Education, Central Library of Charles University |
2009

Abstract

We investigate the role of financial system to facilitate efficient allocation of resources into perspective projects. Employing micro-level data on European firms in 1996-2005 period, we provide evidence that firms in industries with the best growth opportunities use more external finance in financially more developed countries.