A Systems View Across Time and Space
Table 9 A matrix of tests
From: An application of growth diagnostics on the growth of firms: with evidence from Kosovo firms
Binding finance | Binding social returns | ||||||
Low aggregate savings | Bad finance | Lack of complementary factors | Low appropriability | Coordination | |||
Government failure | Market failure | ||||||
Ex ante | Ex post | Â | |||||
Human capital | Infrastructure & public goods (geography?) | Ex ante risks | Tax | Low property rights, crime & corruption | Low R&D Low self-discovery | ||
High lending interest rate | Low lending interest rate | ||||||
Low net cash flow from banks | High net cash flow from banks (dC/C - i) | ||||||
Investment elastic to interest rate | Lack of investment response to interest rate change | ||||||
Access to external finance is low (high country risk, high credit risk attributed to country) | Number of people with high educational level is lower than in comparator countries | Complementary factors (roads) are comparable to comparator countries. The only symptom emerged is related to power supply which was more emphasised by international surveys than by micro-manager survey (2013) | Political risk, social risk | Corruption at tax administration authority | Corruption is uncontrolled | Low R&D Low innovation and therefore low self-discovery | |
Short loan duration, credit rationing | Significantly more students enrolled in social sciences rather than natural, mathematical, engineering, and computer sciences than in comparator countries | Crime is seen as a lucrative area | |||||
High deposit interest rate | High spread | Unfavourable export structure | |||||
Low domestic savings | Interest rates on loans are significantly higher than those in comparator countries | No relationship between private sector firms and universities | High expectation of losing future profits | Rampant tax evasion and informality in the economy | Unfair competition/practices | ||
The size of intermediation system in the country is smaller than in comparator countries | Profits in banking industry are quite high, giving an indication that banks operate in a relatively monopolistic business environment | Entrepreneurship learning/training is not part of national education system | Rule of law is highly defective | There is no coordination, no relationship between business community and governments central and local | |||
Collection of receivables | |||||||
Uncertain economic policies | |||||||
Cost of doing business | |||||||