engleski

Financial Conditions and Industrialization in CEECs

Until recently, deindustrialization was a process experienced exclusively by the advanced economies of the world. The shift of the employment from manufacturing to service sector was an expected phase of the process of development. Nevertheless, the trend of deindustrialisation has also appeared in developing countries. This premature deindustrialisation has numerous negative economic and political consequences, and that is why the new EU industrial policy tries to find out the way how to reverse this process and to induce reindustrialisation. The financial sector has an important role in economic enhancing growth, so it could be expected that it has an important role for the development of the manufacturing industry as well. The aim of this research is to find out if there is any empirical evidence for the existence of discriminated financial conditions for manufacturing sector firms compared to other sector firms in CEEC countries. In this paper micro level data obtained from BEEPS survey that was conducted in 2002, 2005, 2009 and 2013 are analysed. The results suggest that firms operating in manufacturing sector face greater financing obstacles and have higher costs of financing than the firms operating in other sectors of the economy.

financial sector ; deindustrialisation ; manufacturing industry ; BEEPS ; CEEC

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