IMF Working Papers Volume 2019 Issue 107: Credit Supply and Productivity Growth (2019)

Jump to Content Jump to Main Navigation

Credit Supply and Productivity Growth

Author:

Francesco Manaresi

Francesco Manaresinull

Search for other papers by Francesco Manaresi in
Current site
Google Scholar
PubMed

and

Mr. Nicola Pierri

Mr. Nicola Pierri
Search for other papers by Mr. Nicola Pierri in
Current site
Google Scholar
PubMed

https://orcid.org/0000-0002-3120-9670

Series:: IMF Working Papers

Volume/Issue:: Volume 2019: Issue 107

Publication Date:: 17 May 2019

DOI:: https://doi.org/10.5089/9781498315258.001

ISBN:: 9781498315258

ISSN:: 1018-5941

Pages:: 75

Keywords:: WP; supply shock; credit supply; interbank market; capital stock; Productivity; Export; Management; IT adoption; productivity dynamics; firm TFP; credit crunch; borrowing firm; policy function; input acquisition; relation characteristic; firm information; firm balance-sheets; output price; productivity effect; Credit; Supply shocks; Bank credit; Interbank markets

Legal-disclaimer:: IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.

Series:: IMF Working Papers

Volume/Issue:: Volume 2019: Issue 107

Language:: English

Publication Date:: 17 May 2019

DOI:: https://doi.org/10.5089/9781498315258.001

ISBN:: 9781498315258

ISSN:: 1018-5941

Pages:: 75

Keywords:: WP; supply shock; credit supply; interbank market; capital stock; Productivity; Export; Management; IT adoption; productivity dynamics; firm TFP; credit crunch; borrowing firm; policy function; input acquisition; relation characteristic; firm information; firm balance-sheets; output price; productivity effect; Credit; Supply shocks; Bank credit; Interbank markets

Legal-disclaimer:: IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.

Download PDF (2.2 MB) Download Epub

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.

Save
Email this content

Share Link

Copy this link, or click below to email it to a friend
Email this content
or copy the link directly:

https://www.elibrary.imf.org/view/journals/001/2019/107/001.2019.issue-107-en.xml
The link was not copied. Your current browser may not support copying via this button.

Link copied successfully

Collapse
Expand

IMF Working Papers

ISSN:: 1018-5941

Publisher:: International Monetary Fund

Topics

Countries

Series

About

Resources

Share Link

Metrics

Foresee