Publication:
How Prevalent Are Credit-Constrained Firms in the Formal Private Sector?: Evidence Using Global Surveys

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dc.contributor.authorIslam, Asif M.
dc.date.accessioned2023-07-13T18:14:28Z
dc.date.available2023-07-13T18:14:28Z
dc.date.issued2023-07-13
dc.description.abstractThis study develops a measure of firm-level credit constraints by leveraging refinements in survey instruments for a widely used database. Using data on more than 65,000 firms across 109 economies, the study uncovers several insights. Around 30 percent of firms in the formal private sector are credit constrained. Firms that are credit-constrained tend to be smaller and negatively correlated with performance. The more developed the economy, the lower the share of credit-constrained firms. One striking finding is that 52 percent of firms do not apply for loans as they have sufficient credit. For some economies, this may be more indicative of poor opportunities for the expansion of firms and thus the lack of demand for credit. The findings suggest that for policies that improve access to credit to be effective, they should go hand in hand with interventions that provide opportunities for firms to expand.en
dc.identifierhttp://documents.worldbank.org/curated/en/099344506262340821/IDU00bc67ef80419304a7c083000a12355f3b316
dc.identifier.doi10.1596/1813-9450-10502
dc.identifier.urihttps://openknowledge.worldbank.org/handle/10986/40005
dc.languageEnglish
dc.language.isoen
dc.publisherWorld Bank, Washington, DC
dc.relation.ispartofseriesPolicy Research Working Papers; 10502
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttps://creativecommons.org/licenses/by/3.0/igo/
dc.subjectACCESS TO FINANCE
dc.subjectCREDIT CONSTRAINTS
dc.subjectFIRMS AND CREDIT
dc.subjectFINANCE AND FIRMS
dc.subjectFIRM EXPANSION
dc.subjectINVESTMENT CLIMATE
dc.titleHow Prevalent Are Credit-Constrained Firms in the Formal Private Sector?en
dc.title.subtitleEvidence Using Global Surveysen
dc.typeWorking Paper
dspace.entity.typePublication
okr.crossref.titleHow Prevalent Are Credit-Constrained Firms in the Formal Private Sector?: Evidence Using Global Surveys
okr.date.disclosure2023-06-26
okr.date.lastmodified2023-06-26T00:00:00Zen
okr.doctypePolicy Research Working Paper
okr.doctypePublications & Research
okr.docurlhttp://documents.worldbank.org/curated/en/099344506262340821/IDU00bc67ef80419304a7c083000a12355f3b316
okr.guid099344506262340821
okr.identifier.docmidIDU-0bc67ef8-4193-4a7c-8300-a12355f3b316
okr.identifier.doi10.1596/1813-9450-10502
okr.identifier.doihttp://dx.doi.org/10.1596/1813-9450-10502
okr.identifier.externaldocumentum34102153
okr.identifier.internaldocumentum34102153
okr.identifier.reportWPS10502
okr.import.id1074
okr.importedtrueen
okr.language.supporteden
okr.pdfurlhttp://documents.worldbank.org/curated/en/099344506262340821/pdf/IDU00bc67ef80419304a7c083000a12355f3b316.pdfen
okr.region.administrativeMiddle East and North Africa
okr.topicPrivate Sector Development::Enterprise Development & Reform
okr.topicPrivate Sector Development::Business Environment
okr.topicFinance and Financial Sector Development::Access to Finance
okr.unitOffice of the Chief Economist (MNACE)
okr.unitEnterprise Analysis-IFC (DECEA)
relation.isAuthorOfPublicationa811f38c-2de2-5ccd-907b-8c99fc4a5039
relation.isAuthorOfPublication.latestForDiscoverya811f38c-2de2-5ccd-907b-8c99fc4a5039
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