Jobs, Access to Credit, and Informality in MENA Countries
This paper explores the link between jobs, access to Finance, and informality. Using longitudinal firm-level data for countries in the Middle East and North Africa, it documents that jobs creation is positively associated with access to finance. At...
| Main Authors: | , , |
|---|---|
| Format: | Working Paper |
| Language: | English |
| Published: |
World Bank, Washington, DC
2022
|
| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/099448305102214617/IDU0204b4d560c92004724082180c5bb43f94d6b http://hdl.handle.net/10986/37529 |
| Summary: | This paper explores the link between
jobs, access to Finance, and informality. Using longitudinal
firm-level data for countries in the Middle East and North
Africa, it documents that jobs creation is positively
associated with access to finance. At the same time, the
findings show that access to finance is lower for firms that
are more exposed to competition from informal firms. As a
possible mechanism underlying this result, the paper
provides evidence that firms that suffer informal
competition have worse expectations on future sales growth,
which in turn are associated with fewer loan applications. |
|---|