Export Incentives, Financial Constraints, and the (Mis)Allocation of Credit : Micro-level Evidence from Subsidized Export Loans
This paper combines an exogenous shock to the supply of subsidized credit with unique loan-level data from the export sector in Pakistan to identify the impact and allocation of such financial incentives. The removal of subsidized credit causes a significant decline in the exports of privately owned...
| Main Author: | |
|---|---|
| Format: | Journal Article |
| Language: | EN |
| Published: |
2012
|
| Subjects: | |
| Online Access: | http://hdl.handle.net/10986/5045 |
| id |
okr-10986-5045 |
|---|---|
| recordtype |
oai_dc |
| spelling |
okr-10986-50452021-04-23T14:02:20Z Export Incentives, Financial Constraints, and the (Mis)Allocation of Credit : Micro-level Evidence from Subsidized Export Loans Zia, Bilal H. Country and Industry Studies of Trade F140 Financing Policy Financial Risk and Risk Management Capital and Ownership Structure G320 Economic Development: Financial Markets Saving and Capital Investment Corporate Finance and Governance O160 International Linkages to Development Role of International Organizations O190 This paper combines an exogenous shock to the supply of subsidized credit with unique loan-level data from the export sector in Pakistan to identify the impact and allocation of such financial incentives. The removal of subsidized credit causes a significant decline in the exports of privately owned firms, while the exports of large, publicly listed, and group network firms are unaffected. Publicly listed firms make no significant adjustments to their balance sheets, and only their profits are reduced, indicating that they are financially unconstrained. Nearly half of all subsidized loans are assigned to such firms, implying a substantial misallocation of credit and an output loss to privately owned firms of 0.75% of GDP. Productivity differences do not explain the heterogeneous effects across firms. 2012-03-30T07:31:00Z 2012-03-30T07:31:00Z 2008 Journal Article Journal of Financial Economics 0304405X http://hdl.handle.net/10986/5045 EN http://creativecommons.org/licenses/by-nc-nd/3.0/igo World Bank Journal Article |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
EN |
| topic |
Country and Industry Studies of Trade F140 Financing Policy Financial Risk and Risk Management Capital and Ownership Structure G320 Economic Development: Financial Markets Saving and Capital Investment Corporate Finance and Governance O160 International Linkages to Development Role of International Organizations O190 |
| spellingShingle |
Country and Industry Studies of Trade F140 Financing Policy Financial Risk and Risk Management Capital and Ownership Structure G320 Economic Development: Financial Markets Saving and Capital Investment Corporate Finance and Governance O160 International Linkages to Development Role of International Organizations O190 Zia, Bilal H. Export Incentives, Financial Constraints, and the (Mis)Allocation of Credit : Micro-level Evidence from Subsidized Export Loans |
| relation |
http://creativecommons.org/licenses/by-nc-nd/3.0/igo |
| description |
This paper combines an exogenous shock to the supply of subsidized credit with unique loan-level data from the export sector in Pakistan to identify the impact and allocation of such financial incentives. The removal of subsidized credit causes a significant decline in the exports of privately owned firms, while the exports of large, publicly listed, and group network firms are unaffected. Publicly listed firms make no significant adjustments to their balance sheets, and only their profits are reduced, indicating that they are financially unconstrained. Nearly half of all subsidized loans are assigned to such firms, implying a substantial misallocation of credit and an output loss to privately owned firms of 0.75% of GDP. Productivity differences do not explain the heterogeneous effects across firms. |
| format |
Journal Article |
| author |
Zia, Bilal H. |
| author_facet |
Zia, Bilal H. |
| author_sort |
Zia, Bilal H. |
| title |
Export Incentives, Financial Constraints, and the (Mis)Allocation of Credit : Micro-level Evidence from Subsidized Export Loans |
| title_short |
Export Incentives, Financial Constraints, and the (Mis)Allocation of Credit : Micro-level Evidence from Subsidized Export Loans |
| title_full |
Export Incentives, Financial Constraints, and the (Mis)Allocation of Credit : Micro-level Evidence from Subsidized Export Loans |
| title_fullStr |
Export Incentives, Financial Constraints, and the (Mis)Allocation of Credit : Micro-level Evidence from Subsidized Export Loans |
| title_full_unstemmed |
Export Incentives, Financial Constraints, and the (Mis)Allocation of Credit : Micro-level Evidence from Subsidized Export Loans |
| title_sort |
export incentives, financial constraints, and the (mis)allocation of credit : micro-level evidence from subsidized export loans |
| publishDate |
2012 |
| url |
http://hdl.handle.net/10986/5045 |
| _version_ |
1764393723192410112 |