Access to Finance and Job Growth : Firm-Level Evidence across Developing Countries

This paper investigates the effect of access to finance on job growth in 50,000 firms across 70 developing countries. Using the introduction of credit bureaus as an exogenous shock to the supply of credit, the paper finds that increased access to f...

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Main Authors:	Ayyagari, Meghana, Juarros, Pedro, Martinez Peria, Maria Soledad, Singh, Sandeep
Format:	Working Paper
Language:	English en_US
Published:	World Bank, Washington, DC 2016
Subjects:	PHYSICAL CAPITAL LINE OF CREDIT EMPLOYMENT CREDIT MARKETS CAPITAL MARKETS NONPROFIT ORGANIZATION ECONOMIC GROWTH CORPORATION CAPITAL ACCUMULATION FINANCING OUTSTANDING LOAN BANKING INDUSTRY INTEREST BIAS INDUSTRY MEDIUM ENTERPRISES PRIVATE CREDIT STRATEGIES FINANCIAL RESOURCES RECESSION MORTGAGE INFORMATION SHARING ECONOMIC POLICY LOAN SOURCES OF FINANCE CREDITWORTHINESS BORROWERS FIRM SIZE BRANCH CREDITORS INFLATION INTERNATIONAL BANK CREDITOR REGULATORY REFORM JOB LOSSES PUBLIC CREDIT EXTERNAL FINANCE ECONOMIC ACTIVITY ACCESS TO LOAN SME FINANCE INTERNATIONAL FINANCE LABOR MARKET FINANCIAL INSTITUTION CREDIT BUREAUS UNION PRODUCTIVITY ECONOMETRICS CORPORATE FINANCE CRITERIA FINANCIAL INSTITUTIONS MARKETS DEBT FIRM FINANCING NEEDS FIXED ASSET LOANS LABOR ENTERPRISES BANK CREDIT FINANCIAL SYSTEM FINANCE INFRASTRUCTURE BANKS INVESTMENT DECISIONS EXPENDITURE UNEMPLOYMENT CREDIT CONSTRAINTS FIRMS CREDIT REGISTRIES CAPITAL ACCESS TO FINANCE CREDIT ACCESS VALUE SUPPLY OF CREDIT BANK CREDIT EXPENDITURES ENTERPRISE CREDIT INFORMATION PROPERTY PROPERTIES CREDIT REPORTING EMPLOYMENT GROWTH JOB CREATION FINANCIAL ACCESS MARKET CREDIT BUREAU FINANCIAL INFRASTRUCTURE FINANCIAL INFRASTRUCTURES GOVERNANCE INSTITUTIONAL REFORM ACCESS TO CREDIT ECONOMIC DEVELOPMENT EXPANSION LONG TERM FINANCING FIXED ASSETS FINANCIAL DEVELOPMENT BANK BRANCH INVESTMENT FINANCIAL INTERMEDIATION RISK COLLATERAL EQUALITY SALES GROWTH FINANCIAL MARKETS BUSINESS ENVIRONMENT CREDIT RELATIONSHIPS FINANCIAL STRUCTURE BORROWING GREATER ACCESS LENDING SHOCKS LENDING CAPITAL EXPENDITURES EXTERNAL FINANCING SMALL FIRMS SUPPLIERS FIXED COST BANKING CRISES FINANCIAL SYSTEMS LABOR MARKETS GOVERNMENTS SEE MORTGAGE MARKET CASH FLOW STOCK MARKETS FINANCIAL DEPTH CREDIT MARKET SME EMPLOYEES
Online Access:	http://documents.worldbank.org/curated/en/2016/03/26078435/access-finance-job-growth-firm-level-evidence-across-developing-countries http://hdl.handle.net/10986/24146

id	okr-10986-24146
recordtype	oai_dc
spelling	okr-10986-241462021-06-14T10:14:50Z Access to Finance and Job Growth : Firm-Level Evidence across Developing Countries Ayyagari, Meghana Juarros, Pedro Martinez Peria, Maria Soledad Singh, Sandeep PHYSICAL CAPITAL LINE OF CREDIT EMPLOYMENT CREDIT MARKETS CAPITAL MARKETS NONPROFIT ORGANIZATION ECONOMIC GROWTH CORPORATION CAPITAL ACCUMULATION FINANCING OUTSTANDING LOAN BANKING INDUSTRY INTEREST BIAS INDUSTRY MEDIUM ENTERPRISES PRIVATE CREDIT STRATEGIES FINANCIAL RESOURCES RECESSION MORTGAGE INFORMATION SHARING ECONOMIC POLICY LOAN SOURCES OF FINANCE CREDITWORTHINESS BORROWERS FIRM SIZE BRANCH CREDITORS INFLATION INTERNATIONAL BANK CREDITOR REGULATORY REFORM JOB LOSSES PUBLIC CREDIT EXTERNAL FINANCE ECONOMIC ACTIVITY ACCESS TO LOAN SME FINANCE INTERNATIONAL FINANCE LABOR MARKET FINANCIAL INSTITUTION CREDIT BUREAUS UNION PRODUCTIVITY ECONOMETRICS CORPORATE FINANCE CRITERIA FINANCIAL INSTITUTIONS MARKETS DEBT FIRM FINANCING NEEDS FIXED ASSET LOANS LABOR ENTERPRISES BANK CREDIT FINANCIAL SYSTEM FINANCE INFRASTRUCTURE BANKS INVESTMENT DECISIONS EXPENDITURE UNEMPLOYMENT CREDIT CONSTRAINTS FIRMS CREDIT REGISTRIES CAPITAL ACCESS TO FINANCE CREDIT ACCESS VALUE SUPPLY OF CREDIT BANK CREDIT EXPENDITURES ENTERPRISE CREDIT INFORMATION PROPERTY PROPERTIES CREDIT REPORTING EMPLOYMENT GROWTH JOB CREATION FINANCIAL ACCESS MARKET CREDIT BUREAU FINANCIAL INFRASTRUCTURE FINANCIAL INFRASTRUCTURES GOVERNANCE INSTITUTIONAL REFORM ACCESS TO CREDIT ECONOMIC DEVELOPMENT EXPANSION LONG TERM FINANCING FIXED ASSETS FINANCIAL DEVELOPMENT BANK BRANCH INVESTMENT FINANCIAL INTERMEDIATION RISK COLLATERAL EQUALITY SALES GROWTH FINANCIAL MARKETS BUSINESS ENVIRONMENT CREDIT RELATIONSHIPS FINANCIAL STRUCTURE BORROWING GREATER ACCESS LENDING SHOCKS LENDING CAPITAL EXPENDITURES EXTERNAL FINANCING SMALL FIRMS SUPPLIERS FIXED COST BANKING CRISES FINANCIAL SYSTEMS LABOR MARKETS GOVERNMENTS SEE MORTGAGE MARKET CASH FLOW STOCK MARKETS FINANCIAL DEPTH CREDIT MARKET SME EMPLOYEES This paper investigates the effect of access to finance on job growth in 50,000 firms across 70 developing countries. Using the introduction of credit bureaus as an exogenous shock to the supply of credit, the paper finds that increased access to finance results in higher employment growth, especially among micro, small, and medium enterprises. The results are robust to using firm fixed effects, industry measures of external finance dependence, and propensity score matching in a complementary panel data set of more than four million firms in 29 developing countries. The findings have implications for policy interventions targeted to produce job growth in micro, small, and medium enterprises. 2016-04-26T16:13:58Z 2016-04-26T16:13:58Z 2016-03 Working Paper http://documents.worldbank.org/curated/en/2016/03/26078435/access-finance-job-growth-firm-level-evidence-across-developing-countries http://hdl.handle.net/10986/24146 English en_US Policy Research Working Paper;No. 7604 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English en_US
topic	PHYSICAL CAPITAL LINE OF CREDIT EMPLOYMENT CREDIT MARKETS CAPITAL MARKETS NONPROFIT ORGANIZATION ECONOMIC GROWTH CORPORATION CAPITAL ACCUMULATION FINANCING OUTSTANDING LOAN BANKING INDUSTRY INTEREST BIAS INDUSTRY MEDIUM ENTERPRISES PRIVATE CREDIT STRATEGIES FINANCIAL RESOURCES RECESSION MORTGAGE INFORMATION SHARING ECONOMIC POLICY LOAN SOURCES OF FINANCE CREDITWORTHINESS BORROWERS FIRM SIZE BRANCH CREDITORS INFLATION INTERNATIONAL BANK CREDITOR REGULATORY REFORM JOB LOSSES PUBLIC CREDIT EXTERNAL FINANCE ECONOMIC ACTIVITY ACCESS TO LOAN SME FINANCE INTERNATIONAL FINANCE LABOR MARKET FINANCIAL INSTITUTION CREDIT BUREAUS UNION PRODUCTIVITY ECONOMETRICS CORPORATE FINANCE CRITERIA FINANCIAL INSTITUTIONS MARKETS DEBT FIRM FINANCING NEEDS FIXED ASSET LOANS LABOR ENTERPRISES BANK CREDIT FINANCIAL SYSTEM FINANCE INFRASTRUCTURE BANKS INVESTMENT DECISIONS EXPENDITURE UNEMPLOYMENT CREDIT CONSTRAINTS FIRMS CREDIT REGISTRIES CAPITAL ACCESS TO FINANCE CREDIT ACCESS VALUE SUPPLY OF CREDIT BANK CREDIT EXPENDITURES ENTERPRISE CREDIT INFORMATION PROPERTY PROPERTIES CREDIT REPORTING EMPLOYMENT GROWTH JOB CREATION FINANCIAL ACCESS MARKET CREDIT BUREAU FINANCIAL INFRASTRUCTURE FINANCIAL INFRASTRUCTURES GOVERNANCE INSTITUTIONAL REFORM ACCESS TO CREDIT ECONOMIC DEVELOPMENT EXPANSION LONG TERM FINANCING FIXED ASSETS FINANCIAL DEVELOPMENT BANK BRANCH INVESTMENT FINANCIAL INTERMEDIATION RISK COLLATERAL EQUALITY SALES GROWTH FINANCIAL MARKETS BUSINESS ENVIRONMENT CREDIT RELATIONSHIPS FINANCIAL STRUCTURE BORROWING GREATER ACCESS LENDING SHOCKS LENDING CAPITAL EXPENDITURES EXTERNAL FINANCING SMALL FIRMS SUPPLIERS FIXED COST BANKING CRISES FINANCIAL SYSTEMS LABOR MARKETS GOVERNMENTS SEE MORTGAGE MARKET CASH FLOW STOCK MARKETS FINANCIAL DEPTH CREDIT MARKET SME EMPLOYEES
spellingShingle	PHYSICAL CAPITAL LINE OF CREDIT EMPLOYMENT CREDIT MARKETS CAPITAL MARKETS NONPROFIT ORGANIZATION ECONOMIC GROWTH CORPORATION CAPITAL ACCUMULATION FINANCING OUTSTANDING LOAN BANKING INDUSTRY INTEREST BIAS INDUSTRY MEDIUM ENTERPRISES PRIVATE CREDIT STRATEGIES FINANCIAL RESOURCES RECESSION MORTGAGE INFORMATION SHARING ECONOMIC POLICY LOAN SOURCES OF FINANCE CREDITWORTHINESS BORROWERS FIRM SIZE BRANCH CREDITORS INFLATION INTERNATIONAL BANK CREDITOR REGULATORY REFORM JOB LOSSES PUBLIC CREDIT EXTERNAL FINANCE ECONOMIC ACTIVITY ACCESS TO LOAN SME FINANCE INTERNATIONAL FINANCE LABOR MARKET FINANCIAL INSTITUTION CREDIT BUREAUS UNION PRODUCTIVITY ECONOMETRICS CORPORATE FINANCE CRITERIA FINANCIAL INSTITUTIONS MARKETS DEBT FIRM FINANCING NEEDS FIXED ASSET LOANS LABOR ENTERPRISES BANK CREDIT FINANCIAL SYSTEM FINANCE INFRASTRUCTURE BANKS INVESTMENT DECISIONS EXPENDITURE UNEMPLOYMENT CREDIT CONSTRAINTS FIRMS CREDIT REGISTRIES CAPITAL ACCESS TO FINANCE CREDIT ACCESS VALUE SUPPLY OF CREDIT BANK CREDIT EXPENDITURES ENTERPRISE CREDIT INFORMATION PROPERTY PROPERTIES CREDIT REPORTING EMPLOYMENT GROWTH JOB CREATION FINANCIAL ACCESS MARKET CREDIT BUREAU FINANCIAL INFRASTRUCTURE FINANCIAL INFRASTRUCTURES GOVERNANCE INSTITUTIONAL REFORM ACCESS TO CREDIT ECONOMIC DEVELOPMENT EXPANSION LONG TERM FINANCING FIXED ASSETS FINANCIAL DEVELOPMENT BANK BRANCH INVESTMENT FINANCIAL INTERMEDIATION RISK COLLATERAL EQUALITY SALES GROWTH FINANCIAL MARKETS BUSINESS ENVIRONMENT CREDIT RELATIONSHIPS FINANCIAL STRUCTURE BORROWING GREATER ACCESS LENDING SHOCKS LENDING CAPITAL EXPENDITURES EXTERNAL FINANCING SMALL FIRMS SUPPLIERS FIXED COST BANKING CRISES FINANCIAL SYSTEMS LABOR MARKETS GOVERNMENTS SEE MORTGAGE MARKET CASH FLOW STOCK MARKETS FINANCIAL DEPTH CREDIT MARKET SME EMPLOYEES Ayyagari, Meghana Juarros, Pedro Martinez Peria, Maria Soledad Singh, Sandeep Access to Finance and Job Growth : Firm-Level Evidence across Developing Countries
relation	Policy Research Working Paper;No. 7604
description	This paper investigates the effect of access to finance on job growth in 50,000 firms across 70 developing countries. Using the introduction of credit bureaus as an exogenous shock to the supply of credit, the paper finds that increased access to finance results in higher employment growth, especially among micro, small, and medium enterprises. The results are robust to using firm fixed effects, industry measures of external finance dependence, and propensity score matching in a complementary panel data set of more than four million firms in 29 developing countries. The findings have implications for policy interventions targeted to produce job growth in micro, small, and medium enterprises.
format	Working Paper
author	Ayyagari, Meghana Juarros, Pedro Martinez Peria, Maria Soledad Singh, Sandeep
author_facet	Ayyagari, Meghana Juarros, Pedro Martinez Peria, Maria Soledad Singh, Sandeep
author_sort	Ayyagari, Meghana
title	Access to Finance and Job Growth : Firm-Level Evidence across Developing Countries
title_short	Access to Finance and Job Growth : Firm-Level Evidence across Developing Countries
title_full	Access to Finance and Job Growth : Firm-Level Evidence across Developing Countries
title_fullStr	Access to Finance and Job Growth : Firm-Level Evidence across Developing Countries
title_full_unstemmed	Access to Finance and Job Growth : Firm-Level Evidence across Developing Countries
title_sort	access to finance and job growth : firm-level evidence across developing countries
publisher	World Bank, Washington, DC
publishDate	2016
url	http://documents.worldbank.org/curated/en/2016/03/26078435/access-finance-job-growth-firm-level-evidence-across-developing-countries http://hdl.handle.net/10986/24146
_version_	1764455769703448576

Access to Finance and Job Growth : Firm-Level Evidence across Developing Countries

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