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...
| Main Authors: | , , , |
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| Format: | Working Paper |
| Language: | English en_US |
| Published: |
World Bank, Washington, DC
2016
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| Subjects: | |
| 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 |
| Summary: | 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. |
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