Fostering a country’s competitiveness is crucial to provide a viable escape from the current crisis. Using a novel micro-level dataset (EFIGE dataset), this chapter analyzes the relationship between firm-level productivity and the ability of a firm to compete in international markets. Subsequently, the chapter investigates the link between productivity and access to external financing during the crisis. We found that more productive firms are less likely to apply for external financing, but once they do apply for extra credit, they experience a higher probability of obtaining the loan. This selection mechanism is, however, effective only at very low levels of productivity, and creates some friction when firms move up the productivity ladder. This evidence calls for renewed attention by policymakers to ensure that the implementation of new banking regulations is able to guarantee an allocation of credit and access to finance that correlates to firms’ underlying productivity.

Is a new financial model necessary for growth?

ALTOMONTE, CARLO;SAGGIORATO, LORENZO
2013

Abstract

Fostering a country’s competitiveness is crucial to provide a viable escape from the current crisis. Using a novel micro-level dataset (EFIGE dataset), this chapter analyzes the relationship between firm-level productivity and the ability of a firm to compete in international markets. Subsequently, the chapter investigates the link between productivity and access to external financing during the crisis. We found that more productive firms are less likely to apply for external financing, but once they do apply for extra credit, they experience a higher probability of obtaining the loan. This selection mechanism is, however, effective only at very low levels of productivity, and creates some friction when firms move up the productivity ladder. This evidence calls for renewed attention by policymakers to ensure that the implementation of new banking regulations is able to guarantee an allocation of credit and access to finance that correlates to firms’ underlying productivity.
2013
9784431542810
Kaji, Sahoko; Ogawa, Eiji
Who will provide the next financial model?
Altomonte, Carlo; Saggiorato, Lorenzo
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/11565/3801498
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