Duranton, GillesGhani, EjazGoswami, Arti GroverKerr, William R.2015-11-052015-11-052015-10https://hdl.handle.net/10986/22866Growing research and policy interest focuses on the misallocation of output and factors of production in developing economies. This paper considers the possible misallocation of financial loans. Using plant-level data on the organized and unorganized sectors, the paper describes the temporal, geographic, and industry distributions of financial loans. The focus of the analysis is the hypothesis that land misallocation might be an important determinant of financial misallocation (for example, because of the role of land as collateral against loans). Using district-industry variations, the analysis finds evidence to support this hypothesis, although it does not find a total reduction in the intensity of financial loans or those being given to new entrants. The analysis also considers differences by gender of business owners and workers in firms. Although potential early gaps for businesses with substantial female employment have disappeared in the organized sector, a sizeable and persistent gap remains in the unorganized sector.en-USCC BY 3.0 IGOPROFITABILITYCREDIT BUREAUSJOB CREATIONENTREPRENEURSTAXESGOVERNMENTSFINANCIAL ACCESSLOAN AMOUNTCREDITWORTHINESSEQUITYINTERNATIONAL BANKFORMAL FINANCEFINANCIAL DEPTHBANKECONOMETRICSACCESS TO EXTERNAL FINANCEBIASESMARGINAL REVENUEFINANCIAL INTEGRATIONPROPERTYSMALL BUSINESSESPAYMENTRURAL BANKCREDIT REGISTRIESRISK PERCEPTIONLENDINGBANKSDIRECTED CREDITMICRO-ENTERPRISESINVESTMENTCOLLATERAL SUPPORTISSUE OF ACCESSLABORINEQUALITYEXTERNAL FINANCINGFORMAL CREDITNEW ENTRANTSCREDIT POLICYFINANCIAL SECTOR LIBERALIZATIONCORRUPTIONEMPLOYMENT GROWTHWOMENPERSONAL ASSETSINTEREST RATEGENDERHOUSINGOUTSTANDING LOANSECONOMIC GROWTHENTERPRISECREDIT MARKETSPAYMENTSEXCLUSIONGUARANTEEINDUSTRYLOAN DEMANDBANK BRANCHESBANK CREDITCO-OPERATIVE BANKSFINANCIAL DEEPENINGRESOURCE ALLOCATIONACCESS TO LOANSBANK LOANSFINANCINGLABOR MARKETSCREDIT MARKETFINANCIAL MARKETSFINANCIAL SECTOR DEVELOPMENTMICRO ENTERPRISESFIXED ASSETSSIZES OF LOANHUMAN CAPITALBANKING SERVICESLOAN ACCESSSTRATEGIESBORROWERSREAL ESTATEBORROWERENTREPRENEURSHIPWATER SUPPLYHOUSEHOLDSSERVICESUNIONENTREPRENEURMONETARY POLICYMICRO-FINANCE INSTITUTIONSCOST OF CAPITALEXTERNAL FINANCEDISPARITIES IN ACCESSFINANCIAL DEVELOPMENTBUSINESS PLANSHOUSEHOLDCOLLATERALFINANCIAL INSTITUTIONSMICROFINANCECAPITALINFORMATION SHARINGECONOMIC ACTIVITYGREATER ACCESSRESERVE BANK OF INDIAMARKET VALUEASYMMETRIC INFORMATIONECONOMIC DEVELOPMENTACCOUNTINGEMPLOYEEENTERPRISESLAND MARKETSFINANCIAL STRENGTHMICRO-ENTREPRENEURSREVENUERURAL BANKSACCESS TO FORMAL CREDITTRADE CREDITSDEBT COLLECTORSENTERPRISE DEVELOPMENTCREDITACCESS TO CREDITSTART-UPFORM OF COLLATERALLENDERSLAND ISSUESPRIVATE ENTERPRISESGOVERNMENT POLICYLOANSOUTREACHACCESS TO FORMAL FINANCEBUSINESS OWNERSBANK LOANCOMMERCIAL BANKSINTANGIBLE ASSETSREPOSSESSIONSMALL BUSINESS OWNERSMACROECONOMICSMARKETSPRIVATE ENTERPRISECREDIT INFORMATIONRURAL BANK BRANCHESEMPLOYEESDEBTFORMS OF CREDITGENDER INEQUALITYLOANBANK FINANCINGOVERDRAFTHIGH INTEREST RATEINVENTORYFINANCIAL SERVICESBANKINGWORKING CAPITALLABOR MARKETPRINCIPALLENDERSECURITYFINANCIAL SUPPORTINTEREST PAYMENTSPRODUCTIVITYCREDITSINTERESTTANGIBLE ASSETSLANDTRADE CREDITSMALL BUSINESSVALUEACCESS TO BANKINGINTEREST EXPENSEMICRO-FINANCEOUTSTANDING LOANCREDIT-WORTHINESSLACK OF COLLATERALVILLAGESCREDIT RISKACCESS TO FINANCIAL SERVICESLOAN AMOUNTSCREDIT SUPPORTEMPLOYMENTTRANSPORTURBAN AREASACCESS TO FINANCEECONOMICSMICRO-CREDITMONEY LENDERSINTEREST PAYMENTINFRASTRUCTURENET VALUEECONOMIC POLICYBORROWINGRISKCOLLATERAL REQUIREMENTSFAMILYFINANCEPRICINGWorking PaperWorld Bank10.1596/1813-9450-7451