Does Access to Credit Improve Productivity? Evidence from Bulgarian Firms

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 proxie...

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Main Authors:	Gatti, Roberta, Love, Inessa
Format:	Policy Research Working Paper
Language:	English
Published:	World Bank, Washington, DC 2012
Subjects:	ANNUAL SALES BANKING SECTOR BANKS BONDS CAPITAL ACCUMULATION CAPITAL INVESTMENT CAPITAL STOCK COMPARATIVE ANALYSIS CONVENTIONAL WISDOM CREDIT RATIONING DEBT DEVELOPMENT ECONOMICS DIVIDENDS ECONOMIC DEVELOPMENT ECONOMIC EFFICIENCY ECONOMIC GROWTH ECONOMIC THEORY EMPLOYMENT EXOGENOUS VARIABLES EXPORTS FACTOR ACCUMULATION FINANCIAL CRISIS FINANCIAL SECTOR FINANCIAL STRUCTURE FISCAL POLICIES FIXED ASSETS FIXED CAPITAL FOREIGN FIRMS FOREIGN OWNERSHIP GDP GLOBAL MARKETS INTEREST PAYMENTS INTERMEDIATE INPUT INVESTMENT CLIMATE INVESTMENT DECISIONS LARGE CITIES LEVEL OF CAPITAL LIQUIDITY MERGERS PRIVATE INVESTMENT PRODUCTION FUNCTION PRODUCTION FUNCTIONS PRODUCTIVITY PRODUCTIVITY GROWTH PROFITABILITY PUBLIC SERVICES SAVINGS SAVINGS RATES STOCK MARKETS TANGIBLE ASSETS TAX POLICY TECHNOLOGICAL INNOVATION TELECOMMUNICATIONS TFP TOTAL FACTOR PRODUCTIVITY TRADE LIBERALIZATION TRANSACTION COSTS TRANSITION ECONOMIES TREASURY BONDS USE VALUE VALUE ADDED WAGES
Online Access:	http://documents.worldbank.org/curated/en/2006/05/6783614/access-credit-improve-productivity-evidence-bulgarian-firms http://hdl.handle.net/10986/8662

id	okr-10986-8662
recordtype	oai_dc
spelling	okr-10986-86622021-04-23T14:02:40Z Does Access to Credit Improve Productivity? Evidence from Bulgarian Firms Gatti, Roberta Love, Inessa ANNUAL SALES BANKING SECTOR BANKS BONDS CAPITAL ACCUMULATION CAPITAL INVESTMENT CAPITAL STOCK COMPARATIVE ANALYSIS CONVENTIONAL WISDOM CREDIT RATIONING DEBT DEVELOPMENT ECONOMICS DIVIDENDS ECONOMIC DEVELOPMENT ECONOMIC EFFICIENCY ECONOMIC GROWTH ECONOMIC THEORY EMPLOYMENT EXOGENOUS VARIABLES EXPORTS FACTOR ACCUMULATION FINANCIAL CRISIS FINANCIAL SECTOR FINANCIAL STRUCTURE FISCAL POLICIES FIXED ASSETS FIXED CAPITAL FOREIGN FIRMS FOREIGN OWNERSHIP GDP GLOBAL MARKETS INTEREST PAYMENTS INTERMEDIATE INPUT INVESTMENT CLIMATE INVESTMENT DECISIONS LARGE CITIES LEVEL OF CAPITAL LIQUIDITY MERGERS PRIVATE INVESTMENT PRODUCTION FUNCTION PRODUCTION FUNCTIONS PRODUCTIVITY PRODUCTIVITY GROWTH PROFITABILITY PUBLIC SERVICES SAVINGS SAVINGS RATES STOCK MARKETS TANGIBLE ASSETS TAX POLICY TECHNOLOGICAL INNOVATION TELECOMMUNICATIONS TFP TOTAL FACTOR PRODUCTIVITY TRADE LIBERALIZATION TRANSACTION COSTS TRANSITION ECONOMIES TREASURY BONDS USE VALUE VALUE ADDED WAGES 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. 2012-06-21T17:17:51Z 2012-06-21T17:17:51Z 2006-05 http://documents.worldbank.org/curated/en/2006/05/6783614/access-credit-improve-productivity-evidence-bulgarian-firms http://hdl.handle.net/10986/8662 English Policy Research Working Paper; No. 3921 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research Europe and Central Asia Bulgaria
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English
topic	ANNUAL SALES BANKING SECTOR BANKS BONDS CAPITAL ACCUMULATION CAPITAL INVESTMENT CAPITAL STOCK COMPARATIVE ANALYSIS CONVENTIONAL WISDOM CREDIT RATIONING DEBT DEVELOPMENT ECONOMICS DIVIDENDS ECONOMIC DEVELOPMENT ECONOMIC EFFICIENCY ECONOMIC GROWTH ECONOMIC THEORY EMPLOYMENT EXOGENOUS VARIABLES EXPORTS FACTOR ACCUMULATION FINANCIAL CRISIS FINANCIAL SECTOR FINANCIAL STRUCTURE FISCAL POLICIES FIXED ASSETS FIXED CAPITAL FOREIGN FIRMS FOREIGN OWNERSHIP GDP GLOBAL MARKETS INTEREST PAYMENTS INTERMEDIATE INPUT INVESTMENT CLIMATE INVESTMENT DECISIONS LARGE CITIES LEVEL OF CAPITAL LIQUIDITY MERGERS PRIVATE INVESTMENT PRODUCTION FUNCTION PRODUCTION FUNCTIONS PRODUCTIVITY PRODUCTIVITY GROWTH PROFITABILITY PUBLIC SERVICES SAVINGS SAVINGS RATES STOCK MARKETS TANGIBLE ASSETS TAX POLICY TECHNOLOGICAL INNOVATION TELECOMMUNICATIONS TFP TOTAL FACTOR PRODUCTIVITY TRADE LIBERALIZATION TRANSACTION COSTS TRANSITION ECONOMIES TREASURY BONDS USE VALUE VALUE ADDED WAGES
spellingShingle	ANNUAL SALES BANKING SECTOR BANKS BONDS CAPITAL ACCUMULATION CAPITAL INVESTMENT CAPITAL STOCK COMPARATIVE ANALYSIS CONVENTIONAL WISDOM CREDIT RATIONING DEBT DEVELOPMENT ECONOMICS DIVIDENDS ECONOMIC DEVELOPMENT ECONOMIC EFFICIENCY ECONOMIC GROWTH ECONOMIC THEORY EMPLOYMENT EXOGENOUS VARIABLES EXPORTS FACTOR ACCUMULATION FINANCIAL CRISIS FINANCIAL SECTOR FINANCIAL STRUCTURE FISCAL POLICIES FIXED ASSETS FIXED CAPITAL FOREIGN FIRMS FOREIGN OWNERSHIP GDP GLOBAL MARKETS INTEREST PAYMENTS INTERMEDIATE INPUT INVESTMENT CLIMATE INVESTMENT DECISIONS LARGE CITIES LEVEL OF CAPITAL LIQUIDITY MERGERS PRIVATE INVESTMENT PRODUCTION FUNCTION PRODUCTION FUNCTIONS PRODUCTIVITY PRODUCTIVITY GROWTH PROFITABILITY PUBLIC SERVICES SAVINGS SAVINGS RATES STOCK MARKETS TANGIBLE ASSETS TAX POLICY TECHNOLOGICAL INNOVATION TELECOMMUNICATIONS TFP TOTAL FACTOR PRODUCTIVITY TRADE LIBERALIZATION TRANSACTION COSTS TRANSITION ECONOMIES TREASURY BONDS USE VALUE VALUE ADDED WAGES Gatti, Roberta Love, Inessa Does Access to Credit Improve Productivity? Evidence from Bulgarian Firms
geographic_facet	Europe and Central Asia Bulgaria
relation	Policy Research Working Paper; No. 3921
description	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.
format	Publications & Research :: Policy Research Working Paper
author	Gatti, Roberta Love, Inessa
author_facet	Gatti, Roberta Love, Inessa
author_sort	Gatti, Roberta
title	Does Access to Credit Improve Productivity? Evidence from Bulgarian Firms
title_short	Does Access to Credit Improve Productivity? Evidence from Bulgarian Firms
title_full	Does Access to Credit Improve Productivity? Evidence from Bulgarian Firms
title_fullStr	Does Access to Credit Improve Productivity? Evidence from Bulgarian Firms
title_full_unstemmed	Does Access to Credit Improve Productivity? Evidence from Bulgarian Firms
title_sort	does access to credit improve productivity? evidence from bulgarian firms
publisher	World Bank, Washington, DC
publishDate	2012
url	http://documents.worldbank.org/curated/en/2006/05/6783614/access-credit-improve-productivity-evidence-bulgarian-firms http://hdl.handle.net/10986/8662
_version_	1764406071979409408

Does Access to Credit Improve Productivity? Evidence from Bulgarian Firms

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