Does Access to Credit Improve Productivity? Evidence from Bulgaria

Although it is widely accepted that financial development is associated with higher growth, the evidence on the channels through which credit affects growth at the microeconomic level is scant. Using data from a cross-section of Bulgarian firms, we estimate the impact of access to credit, as proxied...

Full description

Bibliographic Details
Main Authors:	Gatti, Roberta, Love, Inessa
Format:	Journal Article
Language:	EN
Published:	2012
Subjects:	Production Cost Capital, Total Factor, and Multifactor Productivity Capacity D240 Capital Budgeting Fixed Investment and Inventory Studies G310 Financing Policy Financial Risk and Risk Management Capital and Ownership Structure G320 Socialist Enterprises and Their Transitions P310 Socialist Institutions and Their Transitions: Financial Economics P340
Online Access:	http://hdl.handle.net/10986/5764

id	okr-10986-5764
recordtype	oai_dc
spelling	okr-10986-57642021-04-23T14:02:23Z Does Access to Credit Improve Productivity? Evidence from Bulgaria Gatti, Roberta Love, Inessa Production Cost Capital, Total Factor, and Multifactor Productivity Capacity D240 Capital Budgeting Fixed Investment and Inventory Studies G310 Financing Policy Financial Risk and Risk Management Capital and Ownership Structure G320 Socialist Enterprises and Their Transitions P310 Socialist Institutions and Their Transitions: Financial Economics P340 Although it is widely accepted that financial development is associated with higher growth, the evidence on the channels through which credit affects growth at the microeconomic level is scant. Using data from a cross-section of Bulgarian firms, we estimate the impact of access to credit, as proxied by indicators of whether firms have access to a credit line or overdraft facility, on productivity. To overcome potential omitted variable bias of Ordinary Least Squares (OLS) estimates, we use information on firms' past growth to instrument for access to credit. We find credit to be positively and strongly associated with TFP. These results are robust to a wide range of robustness checks. 2012-03-30T07:34:26Z 2012-03-30T07:34:26Z 2008 Journal Article Economics of Transition 09670750 http://hdl.handle.net/10986/5764 EN http://creativecommons.org/licenses/by-nc-nd/3.0/igo World Bank Journal Article Bulgaria
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	EN
topic	Production Cost Capital, Total Factor, and Multifactor Productivity Capacity D240 Capital Budgeting Fixed Investment and Inventory Studies G310 Financing Policy Financial Risk and Risk Management Capital and Ownership Structure G320 Socialist Enterprises and Their Transitions P310 Socialist Institutions and Their Transitions: Financial Economics P340
spellingShingle	Production Cost Capital, Total Factor, and Multifactor Productivity Capacity D240 Capital Budgeting Fixed Investment and Inventory Studies G310 Financing Policy Financial Risk and Risk Management Capital and Ownership Structure G320 Socialist Enterprises and Their Transitions P310 Socialist Institutions and Their Transitions: Financial Economics P340 Gatti, Roberta Love, Inessa Does Access to Credit Improve Productivity? Evidence from Bulgaria
geographic_facet	Bulgaria
relation	http://creativecommons.org/licenses/by-nc-nd/3.0/igo
description	Although it is widely accepted that financial development is associated with higher growth, the evidence on the channels through which credit affects growth at the microeconomic level is scant. Using data from a cross-section of Bulgarian firms, we estimate the impact of access to credit, as proxied by indicators of whether firms have access to a credit line or overdraft facility, on productivity. To overcome potential omitted variable bias of Ordinary Least Squares (OLS) estimates, we use information on firms' past growth to instrument for access to credit. We find credit to be positively and strongly associated with TFP. These results are robust to a wide range of robustness checks.
format	Journal Article
author	Gatti, Roberta Love, Inessa
author_facet	Gatti, Roberta Love, Inessa
author_sort	Gatti, Roberta
title	Does Access to Credit Improve Productivity? Evidence from Bulgaria
title_short	Does Access to Credit Improve Productivity? Evidence from Bulgaria
title_full	Does Access to Credit Improve Productivity? Evidence from Bulgaria
title_fullStr	Does Access to Credit Improve Productivity? Evidence from Bulgaria
title_full_unstemmed	Does Access to Credit Improve Productivity? Evidence from Bulgaria
title_sort	does access to credit improve productivity? evidence from bulgaria
publishDate	2012
url	http://hdl.handle.net/10986/5764
_version_	1764396218095501312

Does Access to Credit Improve Productivity? Evidence from Bulgaria

Similar Items