Lage de Sousa, Philip and Ottaviano, Gianmarco I. P. (2014) Relaxing credit constraints in emerging economies: the impact of public loans on the performance of Brazilian manufacturers. CEP Discussion Papers (CEPDP1309). London School of Economics and Political Science. Centre for Economic Performance, London, UK.
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Abstract
Especially in developing countries credit constraints are often perceived as one of the most important market frictions constraining firm innovation and growth. Huge amounts of public money are being devoted to the removal of such constraints but their effectiveness is still subject to an intense policy debate. This paper contributes to this debate by analysing the effects of the Brazilian Development Bank (BNDES) loans. It finds that, before receiving BNDES support, granted firms are indeed more credit constrained than comparable non-granted firms. It also finds that BNDES support allows granted firms to achieve the same level of performance as similar non-granted firms that are not credit constrained. However, it does not allow granted firms to outperform similar non-granted ones.
| Item Type: | Monograph (Discussion Paper) |
|---|---|
| Official URL: | http://cep.lse.ac.uk/_new/publications/series.asp?... |
| Additional Information: | © 2014 The Authors |
| Divisions: | Economics Centre for Economic Performance |
| Subjects: | H Social Sciences > HC Economic History and Conditions H Social Sciences > HD Industries. Land use. Labor H Social Sciences > HG Finance |
| JEL classification: | H - Public Economics > H0 - General > H00 - General O - Economic Development, Technological Change, and Growth > O3 - Technological Change; Research and Development > O38 - Government Policy |
| Date Deposited: | 17 Dec 2014 09:51 |
| Last Modified: | 11 Dec 2024 19:15 |
| Funders: | Economic and Social Research Council |
| URI: | http://eprints.lse.ac.uk/id/eprint/60529 |
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