Financial constraints shape investment behavior in Ukrainian firms, impacting economic growth.
The article explores how companies in Ukraine make investment decisions when they have trouble borrowing money. By studying data from the Ukrainian manufacturing sector, the researchers found that market and ownership structures influence how firms invest. They also discovered that international trade exposure and non-monetary transactions affect the likelihood of facing financial constraints. The study shows that these constraints can impact how much fixed capital companies accumulate, which has implications for the overall welfare of the manufacturing sector in Ukraine.