UID:
edocfu_9959310752302883
Format:
1 online resource (76 pages)
ISBN:
1-4983-1591-7
,
1-4983-1598-4
Series Statement:
IMF Working Papers
Content:
We study the impact of bank credit on firm productivity. We exploit a matched firm-bank database covering all the credit relationships of Italian corporations, together with a natural experiment, to measure idiosyncratic supply-side shocks to credit availability and to estimate a production model augmented with financial frictions. We find that a contraction in credit supply causes a reduction of firm TFP growth and also harms IT-adoption, innovation, exporting, and adoption of superior management practices, while a credit expansion has limited impact. Quantitatively, the credit contraction between 2007 and 2009 accounts for about a quarter of observed the decline in TFP.
Additional Edition:
ISBN 1-4983-1525-9
Language:
English
