Click here for search results
Does access to credit improve productivity ? Evidence from Bulgarian firms, Volume 1
Author:Gatti, Roberta; Love, Inessa; Country:Bulgaria;
Date Stored:2006/05/11Document Date:2006/05/01
Document Type:Policy Research Working PaperSubTopics:Economic Theory & Research; Financial Intermediation; Economic Growth; Banks & Banking Reform; Investment and Investment Climate
Language:EnglishRegion:Europe and Central Asia
Report Number:WPS3921Collection Title:Policy, Research working paper ; no. WPS 3921
Volume No:1  

Summary: Although it is widely accepted that financial development is associated with higher growth, the evidence on the channels through which credit affects growth on the micro-level is scant. Using data from a cross section of Bulgarian firms, the authors estimate the impact of access to credit (as proxied by indicators of whether firms have access to a credit or overdraft facility) on productivity. To overcome potential omitted variable bias of OLS estimates, they use information on firms' past growth to instrument for access to credit. The authors find credit to be positively and strongly associated with total factor productivity. These results are robust to a wide range of robustness checks.

Official Documents
Official, scanned versions of documents (may include signatures, etc.)
File TypeDescriptionFile Size (mb)
PDF 25 pagesOfficial version*0.25
TextText version**
How To Order

* The official version is derived from scanning the final, paper copy of the document and is the official,
archived version including all signatures, charts, etc.
** The text version is the OCR text of the final scanned version and is not an accurate representation of the final text.
It is provided solely to benefit users with slow connectivity.

Permanent URL for this page: