How credit-constrained are firms in Turkey? A survey-based analysis

ABSTRACT

We study the factors related to the financing of firms in Turkey, using the Business Environment and Enterprise Performance Survey (BEEPS). Based on the survey responses of the firms, we calculate the ratio of credit-constrained firms in Turkey and run a logistic regression to investigate the factors explaining the firms’ access to credit. Estimation results show that the likelihood of having access to credit increases with the firm size. Firms are more likely to access credit if they are being independently audited or they are exporters, and they are less likely to access credit if they have overdue payments.

KEYWORDS:

• Business Environment and Enterprise Performance Survey (BEEPS)
• access to credit
• credit constraints
• firm size

JEL CLASSIFICATION:

• G32
• C25