Firm size, growth and financial constraints: is Turkey special?

In this thesis, I analyze the relationship of firm size and age with firm growth, as well as the effects of financial and regulatory environment on firm growth, with an emphasis on Turkish firms. Using the Enterprise Surveys’ firm level data, I investigate whether Turkish firms are different than countries with similar development levels in terms of employment growth rates of firms. Studies suggest that SMEs in Turkey consider constraints on access to finance as a major obstacle on growth. This paper shows that the effects of financial and regulatory environment on firm growth in Turkey are not significantly different than other countries. Furthermore, I find that these effects that are present on international level diminish as firm age increases