The limits of lending: Banks and technology adoption across Russia
Bircan,Cagatay de Haas,Ralph
Bircan,Cagatay
de Haas,Ralph
Abstract
We exploit historically determined variation in local credit markets to identify the impact of bank lending on innovation across Russian firms. We find that deeper credit markets increase firms' use of bank credit, their adoption of new products and technologies, and their productivity growth. This relationship is more pronounced in industries farther from the technological frontier, more exposed to import competition, and that export more. These impacts are also stronger for firms near historical R&D centers or railways and in regions with supportive institutions. Consistent with these results, credit markets contribute to economic growth in such regions. Authors have furnished a data set, which is available on the Oxford University Press Web site next to the link to the final published paper online.
Description
Publisher Copyright: © 2019 The Author(s) 2019. Published by Oxford University Press on behalf of The Society for Financial Studies. All rights reserved. For Permissions, please e-mail: journals.permissions@oup.com.
Date
2020-02
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Volume Title
Publisher
Research Projects
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Keywords
credit constraints, firm innovation, technological change, D22 - Firm Behavior: Empirical Analysis, F63 - Economic Development, G21 - Banks ; Depository Institutions ; Micro Finance Institutions ; Mortgages, O12 - Microeconomic Analyses of Economic Development, O31 - Innovation and Invention: Processes and Incentives, SDG 8 - Decent Work and Economic Growth, SDG 9 - Industry, Innovation, and Infrastructure, SDG 17 - Partnerships for the Goals
Citation
Bircan, C & de Haas, R 2020, 'The limits of lending : Banks and technology adoption across Russia', Review of Financial Studies, vol. 33, no. 2, hhz060, pp. 536-609. https://doi.org/10.1093/rfs/hhz060