Determinants of intended expansion of Polish small firms

Abstract

This paper investigates the determinants of Polish small firm's intentions to expand production in the context of possible economic expansion on accession to the EU. Using a non-linear specification a model is developed using twenty-seven explanatory variables derived from a questionnaire given to Polish small firms in late 1999 asking about their motivations in expanding production. Seven of these variables are found to be

The multi-regime bank lending channel and the effectiveness of the Polish monetary policy transmission during transition

“…On the one hand, according to the NBP's statistics, 77.4% of Polish firms were dependent on bank credit to finance their current activity in 1998. In the same vein, Ghatak et al (2003) find that the difficulty or ease of finding credit in late 1999 was among the most important determinants of the decision to expand production by small Polish firms. On the other hand, Wróbel and Pawłowska (2002) demonstrate that, although output declines over a given period of time following an increase in the interest rate, short-term bank credit changes very little.…”

Regional Development of Small Firms in Poland

“…Interesting policy discussion is also provided by Piasecka and Rainnie (2000) and Woodward (2001) while for literature as to how different regions and their innovation systems relate to the dynamism and competitiveness of firms see Braczyk (1998). Key articles on small firms in the Pomorskie and Lubelskie regions include Ghatak et al (2001Ghatak et al ( ,2003, Mulhern (2003) and Szreder (2001). The current paper inserts itself into this literature by continuing to address the ongoing theme of the comparatively less competitive Polish small firm stratum and the growing awareness of regional differences.…”

“…In the Cobb-Douglas framework also wage growth and profits are linked to productivity growth (McCann 2001 p241-2). 21 "Intentionality" is linked to past and future performance -the intention to increase output is correlated with recent past growth on the one hand and also to actual subsequent growth performance (Pistrui et alia 2002, Ghatak et al 2003. 22 We must beware of extending these results outside of Poland to other transitional economies without further investigation.…”