Finance constraints and the business environment

Three new working papers that I had been meaning to write about. Never got around to it.

• How important are financing constraints? The role of finance in the business environment, by Maksimovic, Ayyagari and Demirguc-Kunt
• Can foreign portfolio investment bridge the small firm financing gap around the world?, by April Knill
• Taking the bad with the good: volatility of foreign portfolio investment and financial constraints of small firms, by April Knill

Our small and medium enterprise (SME) database has also been updated.