Access to long-term credit and productivity of small and medium firms: A causal evidence ☆

Research paper by Tiago Cavalcanti, Paulo Henrique Vaz

Indexed on: 09 Nov '16Published on: 07 Nov '16Published in: Economics Letters


This letter assesses the impact of a variation in access to a targeted loan program from Brazil’s development bank on investment and productivity. Results suggest that eligible firms increased their relative investment rate and productivity, but results are robust only for permanent rather than temporary improvements in access to credit.

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