Efficient Financial Allocation and Productivity Growth in Brazil

Calice, Pietro ; Ribeiro, Eduardo P. ; Byskov, Steen

World Bank, Washington, DC

关键词: ACCESS TO FINANCE;    ACCESS TO CREDIT;    MISALLOCATION;    PUBLIC CREDIT;    PRODUCTIVITY;   

DOI  :  10.1596/1813-9450-8479
RP-ID  :  WPS8479

学科分类：社会科学、人文和艺术（综合）

来源: World Bank Open Knowledge Repository

【 摘 要 】

This paper attempts to study the impactof Brazilian Development Bank credit on resourcemisallocation in Brazil, using manufacturing firm-level datafrom 2003-14. The paper first estimates measures of resourcemisallocation based on Hsieh and Klenow (2009), documentinghigh variation in firms' capital and outputdistortions. It then estimates the effect of financialfrictions and access to Brazilian Development Bank loans ondistortions and their dispersions. The analysis finds somepreliminary evidence that the use of Brazilian DevelopmentBank credit is not associated with a more efficientallocation of resources. The lower cost of BrazilianDevelopment Bank loans reduces the marginal cost of capital,as it induces firms to reallocate inputs from labor tocapital, and this effect is amplified for more financiallydependent firms. The findings, together with extant evidenceon the economic additionality of the Brazilian DevelopmentBank, suggest that there is room for improving theallocative efficiency of the earmarked credit system in Brazil.