Regional financial development and firm growth in Peru

Eduardo Morón; Edgar Salgado; Cristhian Seminario

doi:10.18235/0011495

Regional financial development and firm growth in Peru

Título traducido de la contribución: Desarrollo financiero regional y crecimiento empresarial en el Perú

Eduardo Morón, Edgar Salgado, Cristhian Seminario

Producción científica: Documento de trabajo

Resumen

Este artículo documenta la relación entre el desarrollo financiero regional y el crecimiento empresarial en el sector manufacturero peruano. Para controlar la causalidad mutua entre la disponibilidad de crédito y el crecimiento empresarial, se aprovechan las diferencias entre industrias en cuanto a su dependencia financiera de fondos externos. Se utilizan los censos económicos nacionales de 1994 y 2008, lo que permite un análisis a nivel de empresa y de actividad económica. Los resultados sugieren un efecto significativo y positivo del desarrollo financiero en el crecimiento de las empresas supervivientes. Sin embargo, este efecto es menor en las microempresas, lo que sugiere que el costo del financiamiento externo disminuye con el desarrollo financiero, principalmente para las grandes empresas. Las conclusiones se mantienen incluso al incluir empresas que entran y salen del mercado. Además, el estudio encuentra que la expansión del crédito ha fomentado no solo el crecimiento empresarial, sino también la entrada de nuevas empresas. Los resultados son robustos utilizando una medida alternativa de dependencia financiera.

Título traducido de la contribución	Desarrollo financiero regional y crecimiento empresarial en el Perú
Idioma original	Inglés
Número de páginas	54
DOI	https://doi.org/10.18235/0011495
Estado	Publicada - jun. 2013

Series de publicaciones

Nombre	IDB working paper series
Editor	Inter-American Development Bank
N.º	IDB-WP-398

Palabras clave

Crecimiento empresarial
Manufactura
Desarrollo financiero
Perú

ODS de las Naciones Unidas

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title = "Regional financial development and firm growth in Peru",

abstract = "This paper documents the relationship between regional financial development and firm growth in the Peruvian manufacturing sector. In order to control for mutual causality between credit availability and firm growth, industry differences in financial dependence on external funds are exploited. The 1994 and 2008 rounds of the National Economic Census are used, permitting analysis at the firm level as well as the activity level. Results suggest a significant and positive effect of financial deepening on surviving firms` growth. However, this effect is smaller for micro enterprises, suggesting that the cost of external funding decreases with financial development mainly for large firms. The conclusions remain unchanged when entering and exiting firms are included. The paper further finds that credit expansion have encouraged not only firm growth but also firm entry. The results are robust using an alternative measure of financial dependence.",

keywords = "Crecimiento empresarial, Manufactura, Desarrollo financiero, Per{\'u}, Firm growth, Manufacturing, Financial development, Peru",

author = "Eduardo Mor{\'o}n and Edgar Salgado and Cristhian Seminario",

year = "2013",

month = jun,

doi = "10.18235/0011495",

language = "English",

series = "IDB working paper series",

publisher = "Inter-American Development Bank",

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TY - UNPB

T1 - Regional financial development and firm growth in Peru

AU - Morón, Eduardo

AU - Salgado, Edgar

AU - Seminario, Cristhian

PY - 2013/6

Y1 - 2013/6

N2 - This paper documents the relationship between regional financial development and firm growth in the Peruvian manufacturing sector. In order to control for mutual causality between credit availability and firm growth, industry differences in financial dependence on external funds are exploited. The 1994 and 2008 rounds of the National Economic Census are used, permitting analysis at the firm level as well as the activity level. Results suggest a significant and positive effect of financial deepening on surviving firms` growth. However, this effect is smaller for micro enterprises, suggesting that the cost of external funding decreases with financial development mainly for large firms. The conclusions remain unchanged when entering and exiting firms are included. The paper further finds that credit expansion have encouraged not only firm growth but also firm entry. The results are robust using an alternative measure of financial dependence.

AB - This paper documents the relationship between regional financial development and firm growth in the Peruvian manufacturing sector. In order to control for mutual causality between credit availability and firm growth, industry differences in financial dependence on external funds are exploited. The 1994 and 2008 rounds of the National Economic Census are used, permitting analysis at the firm level as well as the activity level. Results suggest a significant and positive effect of financial deepening on surviving firms` growth. However, this effect is smaller for micro enterprises, suggesting that the cost of external funding decreases with financial development mainly for large firms. The conclusions remain unchanged when entering and exiting firms are included. The paper further finds that credit expansion have encouraged not only firm growth but also firm entry. The results are robust using an alternative measure of financial dependence.

KW - Crecimiento empresarial

KW - Manufactura

KW - Desarrollo financiero

KW - Perú

KW - Firm growth

KW - Manufacturing

KW - Financial development

KW - Peru

U2 - 10.18235/0011495

DO - 10.18235/0011495

M3 - Working paper

T3 - IDB working paper series

BT - Regional financial development and firm growth in Peru

ER -

Regional financial development and firm growth in Peru

Resumen

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Palabras clave

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