chapter  6
Finance constraints, persistent exporting and investment
Pages 18

The rest of this chapter is organised into five sections. Section 6.1 presents the theoretical framework that is commonly used to test for finance constraints on the firm’s investment decisions. In Section 6.2, we discuss our proposed extension of this framework to test for the sources of finance constraints across different providers of external funds. Section 6.3 discusses the key features of the financial intermediation process in India, with particular reference to the sources and uses of funds of the firms in our study. Section 6.4 discusses the empirical results. Section 6.5 concludes.