## Credit Supply and Productivity Growth

_IMF Working Papers, May 17, 2019_

## Source details

**Canonical URL:** [Credit Supply and Productivity Growth](https://www.imf.org/en/publications/wp/issues/2019/05/17/credit-supply-and-productivity-growth-46894)

## Other formats

- [Markdown version](/en/publications/wp/issues/2019/05/17/credit-supply-and-productivity-growth-46894/index.md)
- [Structured JSON version](/en/publications/wp/issues/2019/05/17/credit-supply-and-productivity-growth-46894/index.json)
- [Bundle manifest](/en/publications/wp/issues/2019/05/17/credit-supply-and-productivity-growth-46894/bundle-manifest.json)

## Bibliographic details
- Authors: Francesco Manaresi, Nicola Pierri
- Published: May 17, 2019
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781498315258.001

---

### Study overview
- Authors: Francesco Manaresi, Nicola Pierri
- Date: May 17, 2019
- Series: Working Paper No. 2019/107
- Pages: 75
- Volume: 2019
- Issue: 107
- DOI: https://doi.org/10.5089/9781498315258.001
- ISBN: 9781498315258
- ISSN: 1018-5941

### Research question and methodology
- Research question: Impact of bank credit on firm productivity.
- Data and identification:
  - Matched firm-bank database covering all the credit relationships of Italian corporations.
  - Use of a natural experiment to measure idiosyncratic supply-side shocks to credit availability.
  - Estimation of a production model augmented with financial frictions.

### Key findings
- A contraction in credit supply causes a reduction of firm TFP growth.
- A contraction in credit supply also harms:
  - IT-adoption,
  - innovation,
  - exporting,
  - adoption of superior management practices.
- A credit expansion has limited impact.
- Quantitative contribution: "the credit contraction between 2007 and 2009 accounts for about a quarter of observed the decline in TFP."

### Subject areas and keywords (as provided)
- Subject: Bank credit, Banking, Credit, Economic theory, Financial markets, Interbank markets, Money, Production, Productivity, Supply shocks
- Keywords: Bank credit, borrowing firm, capital stock, Credit, credit crunch, credit supply, Export, firm balance-sheets, firm information, firm TFP, input acquisition, interbank market, Interbank markets, IT adoption, Management, output price, policy function, Productivity, productivity dynamics, productivity effect, relation characteristic, supply shock, Supply shocks, WP

*Content summarized from IMF Working Papers entry "Credit Supply and Productivity Growth" by Francesco Manaresi and Nicola Pierri (May 17, 2019).*

---

## Content in this bundle

- **Working Paper**
  - [Working Paper (Markdown version)](/-/media/files/publications/wp/2019/wpiea2019107.pdf.md){rel="alternate" type="text/markdown"}
  - [Working Paper (PDF)](/-/media/files/publications/wp/2019/wpiea2019107.pdf){rel="external" type="application/pdf"}

---

_Source: https://www.imf.org/en/publications/wp/issues/2019/05/17/credit-supply-and-productivity-growth-46894_