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The Effect of Subsidized Lending Programs on the Economic Performance of Small and Medium-Sized Enterprises: Evidence from Russia

Author

Listed:
  • Evguenia Bessonova

    (Bank of Russia, HSE University, Russian Federation)

  • Svetlana Popova

    (Bank of Russia, Russian Federation)

  • Konstantin Styrin

    (Bank of Russia, NES, Russian Federation)

Abstract

We study the effect of the participation in a subsidized lending program on economic outcomes of small and medium-sized enterprises (SMEs) in Russia. The estimated effect on sales and employment is statistically and economically significant and robust. The annual growth of sales increases by 10.7-11.4 p.p. and of employment by 4-7 p.p. The effect on profits is sizeable but not robust, being very sensitive to the way the control sub-sample is constructed.

Suggested Citation

  • Evguenia Bessonova & Svetlana Popova & Konstantin Styrin, 2024. "The Effect of Subsidized Lending Programs on the Economic Performance of Small and Medium-Sized Enterprises: Evidence from Russia," Bank of Russia Working Paper Series wps140, Bank of Russia.
    • Handle: RePEc:bkr:wpaper:wps140
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    References listed on IDEAS

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    Keywords

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    JEL classification:

    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • G38 - Financial Economics - - Corporate Finance and Governance - - - Government Policy and Regulation
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance

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