Citation

Discussion Paper Details

Please find the details for DP6676 in an easy to copy and paste format below:

Full Details   |   Bibliographic Reference

Full Details

Title: Does access to credit improve productivity? Evidence from Bulgarian firms

Author(s): Roberta Gatti and Inessa Love

Publication Date: February 2008

Keyword(s): access to credit, productivity and transition

Programme Area(s): Public Economics

Abstract: 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 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.

For full details and related downloads, please visit: https://cepr.org/active/publications/discussion_papers/dp.php?dpno=6676

Bibliographic Reference

Gatti, R and Love, I. 2008. 'Does access to credit improve productivity? Evidence from Bulgarian firms '. London, Centre for Economic Policy Research. https://cepr.org/active/publications/discussion_papers/dp.php?dpno=6676