Local Financial Development and Firm Performance: Evidence from Morocco
AbstractCombining data from the Moroccan census of manufacturing enterprises with information from a commune survey, we test whether firm expansion is affected by local financial development.� Our findings are consistent with this hypothesis: local bank availability is robustly associated with faster growth for small and medium-size firms in sectors with growth opportunities, with a lower likelihood of firm exit and a higher likelihood of investment.� The findings also suggests a channel for the availability of financing on firm growth in our data, namely that access to credit was used to invest in labor saving technology.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by University of Oxford, Department of Economics in its series Economics Series Working Papers with number CSAE WPS/2011-02.
Date of creation: 01 Jan 2011
Date of revision:
Manufacturing; credit constraint; firm size;
Other versions of this item:
- Marcel Fafchamps & Matthias Schündeln, 2011. "Local Financial Development and Firm Performance: Evidence from Morocco," CSAE Working Paper Series 2011-02, Centre for the Study of African Economies, University of Oxford.
- O16 - Economic Development, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
- L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
You can help add them by filling out this form.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Caroline Wise).
If references are entirely missing, you can add them using this form.