Supply side obstacles to financing the private sector: empirical evidence from a small island developing state

Sharma, P. and Gounder, Neelesh N. (2013) Supply side obstacles to financing the private sector: empirical evidence from a small island developing state. The Journal of Pacific Studies, 33 (1). pp. 4-24. ISSN 1011-3029

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Abstract

In light of the positive growing finance–private sector–economic growth findings, this article examines, from a supply side perspective, obstacles to private sector financing in Fiji, a growth deprived, small island developing state in the Pacific region. A survey of 80 percent of formal financial institutions reveals that, contrary to popular belief, financing the private sector may not be a major problem. However, the prevalent relationship – lending practices, good profits and well-managed risks, together with moderate growth in private sector credit – also suggests that suppliers may be concentrating on a systematically selected small group of connected borrowers, resulting in the wider private sector, including many SMEs, being left out. Growth and development implications extend to developing economies across the Pacific.

Item Type:	Journal Article
Subjects:	H Social Sciences > HG Finance
Divisions:	Faculty of Business and Economics (FBE) > School of Economics
Depositing User:	Neelesh Gounder
Date Deposited:	27 Jan 2014 04:56
Last Modified:	06 Jul 2016 23:10
URI:	http://repository.usp.ac.fj/id/eprint/7139

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