R&D and Credit Rationing in SMEs

20 Pages Posted: 9 May 2014

See all articles by Maria Luisa Mancusi

Maria Luisa Mancusi

Department of Economics and Finance; Università Cattolica del Sacro Cuore (UCSC)

Andrea Vezzulli

UECE - Research Unit on Complexity in Economics

Date Written: July 2014

Abstract

We study the effects of credit rationing on research and development (R&D) investment using survey and accounting data on a large representative sample of manufacturing small‐ and medium‐sized enterprises (SMEs). Our econometric model accounts for the endogeneity of our credit rationing indicator and employs an innovative theory‐based identification strategy. We find that credit rationing has a significantly negative effect on both the probability to set up R&D activities and on the level of R&D spending (conditioned on the R&D decision), but the overall estimated reduction in R&D spending is largely to be associated with the first effect.

JEL Classification: G21, D82, O32, C35

Suggested Citation

Mancusi, Maria Luisa and Vezzulli, Andrea, R&D and Credit Rationing in SMEs (July 2014). Economic Inquiry, Vol. 52, Issue 3, pp. 1153-1172, 2014, Available at SSRN: https://ssrn.com/abstract=2434888 or http://dx.doi.org/10.1111/ecin.12080

Maria Luisa Mancusi (Contact Author)

Department of Economics and Finance; Università Cattolica del Sacro Cuore (UCSC) ( email )

1 Largo A. Gemelli
Milano (Milan), MI Milano 20123
Italy

Andrea Vezzulli

UECE - Research Unit on Complexity in Economics ( email )

ISEG/UTL, Rua Miguel Lupi 20
Lisboa, 1249-078
Portugal

HOME PAGE: http://pascal.iseg.utl.pt/~uece/peoplefellows.shtml

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