R&D Activity and Financing Constraints: Evidence From Turkey

Authors

  • Armağan Gezici Keene State College
  • Özgür Orhangazi Kadir Has University
  • Cihan Yalçın Central Bank of the Republic of Turkey

DOI:

https://doi.org/10.2298/PAN170420011G

Keywords:

R&D investment, financing constraint, credit constraint, internal funds, cash flow, Turkey

Abstract

We analyze the relationship between financing constraints and firms' R&D activity using a rich and comprehensive firm-level balance sheet and income statement data set of manufacturing firms in Turkey for the period 1996 to 2013. Using a firm-specific, time-varying financing constraints index, we find that financing constraints have a negative relationship with firms' R&D activity, after controlling for other determinants of R&D such as firm size, capital intensity and export market participation. 

Key words: R&D investment, financing constraint, credit constraint, internal funds, cash flow, Turkey. 

JEL: G30, G32, L20, O31, C33, E22.

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Published

2018-05-14

How to Cite

Gezici, A., Orhangazi, Özgür, & Yalçın, C. (2018). R&D Activity and Financing Constraints: Evidence From Turkey. Panoeconomicus, 67(4), 557–571. https://doi.org/10.2298/PAN170420011G

Issue

Vol. 67 No. 4 (2020)

Section

Original scientific paper