Informality and Bank Credit : Evidence from Firm-Level Data / Junko Koeda, Era Dabla-Norris.

Format:

Book

Government document

Author/Creator:

Koeda, Junko.

Contributor:

Dabla-Norris, Era.

Series:

IMF Working Papers; Working Paper ; No. 2008/094

IMF working paper ; WP/08/94

IMF Working Papers

Language:

English

Subjects (All):

Bank loans--Econometric models.

Bank loans.

Informal sector (Economics)--Econometric models.

Informal sector (Economics).

Business enterprises--Finance--Econometric models.

Business enterprises.

Physical Description:

1 online resource (39 p.)

Edition:

1st ed.

Place of Publication:

Washington, D.C. : International Monetary Fund, 2008.

Language Note:

English

Summary:

The paper relies on a firm-level data on transition economies to examine the relationship between informality and bank credit. We find evidence that informality is robustly and significantly associated with lower access to and use of bank credit. We also find that higher tax compliance costs reduce firms' reliance on bank credit, while a stronger quality of the legal environment is associated with higher access to credit even for financially opaque informal firms. An interactive term between a country-wide measure of tax compliance costs and the level of informal activity is negative and significant, suggesting that the negative association between informality and bank credit is stronger in countries with weak tax administration.

Contents:

Contents; I. Introduction; II. Analytical Framework; III. Empirical Strategy and Results; A. Empirical Model; B. Data and Summary Statistics; C. Empirical Results; D. Robustness Tests; IV. Conclusions; Tables; 1. Summary Statistics; 2. Correlation Matrix; 3. Baseline Regression; 4. Access to Credit and Informality: Impact of Business Environment; 5. Informality, Access to Credit, and Business Environment: Interaction Effects; 6. Access to Credit and Informality: Impact of Institutional Development; 7. Informality, Access to Credit, and Business Environment: Interaction Effects

8. Extended Regressions: Firm Transparency and Performance9. Interaction Regressions: Informality, Firm Transparency, and Firm Performance; 10. Instrumental Variables Regression; Appendices; I. Solving the Model; II. Countries in the Sample; III. Variables and Sources; References

Notes:

Description based upon print version of record.

Includes bibliographical references.

Description based on online resource; title from PDF title page (ebrary, viewed February 27, 2014).

ISBN:

9786612840494

9781462368921

1462368921

9781452716800

1452716803

9781282840492

1282840495

9781451869552

145186955X

OCLC:

815737085