Firm Size and Credit in Argentina
AbstractThe goal of this paper is to study the link between bank credit (and internal funding) and average firm size in Argentina. Besides the fact that economic growth tends to go hand in hand with larger firm size, the topic is of particular interest because of the severe credit crunch in Argentina in the aftermath of the 2001-2002 financial crisis. To this end, a novel three-digit industry-level dataset spanning the 2000-2010 period was constructed. The results confirm the expected positive impact of credit supply on average firm size. Furthermore, the study expands on common knowledge by testing the sensitivity of firm size to internal funding and the differential financing behavior of the primary and the manufacturing sector. The results do not seem to be driven by endogeneity bias.
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Bibliographic InfoPaper provided by Inter-American Development Bank in its series IDB Publications with number 80440.
Date of creation: Mar 2013
Date of revision:
Financial Services; IDB-WP-396;
Other versions of this item:
- Sebastian Auguste & Ricardo N. Bebczuk & Gabriel Sanchez, 2013. "Firm Size and Credit in Argentina," Research Department Publications, Inter-American Development Bank, Research Department IDB-WP-396, Inter-American Development Bank, Research Department.
- D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
- D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights
- G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
- G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
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