The impact of public guarantees on credit to SMEs

Zecchini, Salvatore; Ventura, Marco

doi:10.1007/s11187-007-9077-7

Cited by 140 publications

(80 citation statements)

References 16 publications

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…4 We should note that the impact of public intervention upon financial constraints, that are not specific to the innovation process, has been previously analysed, even though with different methodologies (e.g. Zecchini and Ventura, 2009). appropriability and knowledge spillovers (Hall and Lerner, 2010). In this line, the main empirical issue is whether subsidies stimulate or replace R&D spending (David et al, 2000).…”

mentioning

confidence: 99%

Do financial constraints threat the innovation process? Evidence from Portuguese firms

Silva

Carreira

2012

Economics of Innovation and New Technology

View full text Add to dashboard Cite

Abstract:This paper broadly addresses the financing problems of the innovation process, by analysing the extent to which financial constraints hinder firms' investment in R&D and innovation, as well as investigating the role of public financial support in alleviating such constraints. In order to overcome the problems associated with measuring financial constraints, we make use of both indirect and direct measures of constraints. Our findings suggest that while financial constraints have a perverse effect upon R&D investment and innovation, there is no evidence that subsidies mitigate such constraints. Accordingly, we raise a number of questions regarding the efficiency and effectiveness of subsidies in alleviating firms' financial constraints.

show abstract

mentioning

confidence: 99%

Do financial constraints threat the innovation process? Evidence from Portuguese firms

Silva

Carreira

2012

Economics of Innovation and New Technology

View full text Add to dashboard Cite

show abstract

“…They applied a difference in difference analysis and showed that the median value of bank debt was higher by 12.4% for guaranteed firms relative to the others. While admitting such value was on the low side compared to other studies, Zecchini and Ventura (2009) suggest that this evidence correlates with the high degree of selectivity in targeting SME groups in Italy and, when compared to other examples, the Italian SGS scheme had historically managed to limit default rates and contain the public subsidy. In addition, the guarantee enabled participating firms to reduced borrowing costs between 16% and 20% at the median point compared to nonguaranteed firms.…”

Section: Does the Intervention Bring About Improved Access In Credit mentioning

confidence: 71%

“…There is a general perception that SMEs are seriously disadvantaged in financial markets. With fewer assets and lacking a track record, small firms experience tighter financial constraints from the banking sector compared to other firms (Zecchini and Ventura 2009). In a debate spanning almost 4 decades, various authors (Green 2003;Roper 2011) suggest that this is due several factors including high administrative costs of small-scale lending, asymmetric information, inadequate collateral and the overall riskiness of these early stage businesses.…”

Section: Other System Level Concernsmentioning

confidence: 99%

“…For Italy's state funded guarantee scheme (SGS), Zecchini and Ventura (2009) argued that debt levels between guaranteed and non-guaranteed firms is consistent with a lending additionality test. Credit rationed firms (without guarantees) should a priori have lower debt levels relative to guaranteed firms and this is equivalent to the additional supply of credit.…”

Section: Does the Intervention Bring About Improved Access In Credit mentioning

confidence: 99%

See 1 more Smart Citation

Access to Finance: Impacts of Publicly Supported Venture Capital and Loan Guarantees

Ramlogan¹,

Rigby²

2012

View full text Add to dashboard Cite

“…Nevertheless, there is limited evidence of the effectiveness of these programs or policies through experimental and quasi-experimental evaluations. The current literature has mainly focused on certain types of interventions, such as microfinance (Aroca, 2002;; Banegas et al, 2002;; Dunn and Arbunckle, 2001;; McNelly et al, 1996;; Mosley, 2001) and loan guarantee programs (Arráiz, Meléndez, and Stucchi, 2014;; Chandler, 2012;; Kang, Heshmati, and Choi, 2008;; Zecchini and Ventura, 2009 Paravisini (2005). These studies generally show a positive effect of access to credit on investment and production growth, as well as an improvement in loan conditions.…”

Section: Introductionmentioning

confidence: 99%

El impacto del Programa de Crédito para el Desarrollo de la Producción y el Empleo en la Provincia de San Juan

Bueso-Merriam¹,

Demichelis²,

Díez³

et al. 2016

View full text Add to dashboard Cite

Contact: María Carmen Fernández Díez, carmenfe@iadb.org.Inter-American Development Bank. This work is licensed under a Creative Commons IGO 3.0 Attribution-NonCommercial-NoDerivatives (CC-IGO BY-NC-ND 3.0 IGO) license (http://creativecommons.org/ licenses/by-nc-nd/3.0/igo/legalcode) and may be reproduced with attribution to the IDB and for any noncommercial purpose. No derivative work is allowed.Any dispute related to the use of the works of the IDB that cannot be settled amicably shall be submitted to arbitration pursuant to the UNCITRAL rules. The use of the IDB's name for any purpose other than for attribution, and the use of IDB's logo shall be subject to a separate written license agreement between the IDB and the user and is not authorized as part of this CC-IGO license.Note that link provided above includes additional terms and conditions of the license.The opinions expressed in this publication are those of the authors and do not necessarily reflect the views of the Inter-American Development Bank, its Board of Directors, or the countries they represent.http://www.iadb.org Copyright © 2016Abstract * A shortcoming of the current empirical impact evaluation literature is the lack of studies that measure the effect of access to credit in the medium and long term, as well as the impact on interventions targeted at micro-, small-, and medium-sized enterprises (MSMEs). This study addresses both aspects by analyzing the average impact that the Lending Program for the Productive Development and Employment Generation of the San Juan Province has had on sales, employment, investment, and productivity of beneficiary MSMEs. The authors measured the abovementioned impacts using a lagged dependent variable (LDV) model that, beyond controlling for selection bias, also controls for the sequential entry of companies into the program. To conduct this analysis, the authors used a survey implemented by the National University of San Juan to 664 companies. The results of the study indicate a positive and statistically significant impact of 6.9 percent on the likelihood to invest, 9.7 percent on sales, 4.3 percent on employment, and 6.4 percent on labor productivity. The analysis allows for the identification of differentiated impacts by type of company, as classified by size and sector or type of economic activity. JEL Codes: C23, D24, G20, G21, H43, L25, O12, O16

show abstract

The impact of public guarantees on credit to SMEs

Abstract: Causal effect, Credit rationing, Difference-in-difference, SME, State-fund guarantee, G14, G21, G28, L26,

Cited by 140 publications

References 16 publications

Do financial constraints threat the innovation process? Evidence from Portuguese firms

Do financial constraints threat the innovation process? Evidence from Portuguese firms

Access to Finance: Impacts of Publicly Supported Venture Capital and Loan Guarantees

El impacto del Programa de Crédito para el Desarrollo de la Producción y el Empleo en la Provincia de San Juan

Contact Info

Product

Resources

About