The IMF Country Reports Series covers economic and financial developments and trends in member countries. Each report, prepared by a staff team after discussions with officials of the country, is published at the option of the member.
This Selected Issues paper focuses on financing constraints and productivity in Estonia. The paper examines two questions: (1) is there evidence of financing constraints among Estonian firms; and (2) have financing constraints reduced firm-level total factor productivity (TFP)? These questions are particularly important in the current environment, in which credit growth in Estonia has slowed down considerably and firms may face increasing financing constraints that could dampen growth. The paper also provides empirical evidence on the existence of financing constraints among Estonian firms.