The effect of size and productivity on borrowing discouragement for small firms in Colombia
I estimate the effect micro firms’ size and productivity have on the probability of becoming a discouraged borrower: firms that do not use credit from the formal financial system despite needing it. I also estimate the effect that size and productivity have on the probability of becoming accepted in...
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| Format: | Article |
| Language: | English |
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Elsevier
2022-12-01
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| Series: | Latin American Journal of Central Banking |
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| Online Access: | http://www.sciencedirect.com/science/article/pii/S266614382200031X |
| _version_ | 1811297986989260800 |
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| author | Oscar Jaulín-Méndez |
| author_facet | Oscar Jaulín-Méndez |
| author_sort | Oscar Jaulín-Méndez |
| collection | DOAJ |
| description | I estimate the effect micro firms’ size and productivity have on the probability of becoming a discouraged borrower: firms that do not use credit from the formal financial system despite needing it. I also estimate the effect that size and productivity have on the probability of becoming accepted in the event of a formal credit request. Using a trivariate probit model that corrects for selection biases, I find that productivity and size (number of employees) reduce the likelihood of becoming discouraged. Both variables are related to a higher probability of being accepted in formal credit requests. |
| first_indexed | 2024-04-13T06:13:11Z |
| format | Article |
| id | doaj.art-178d77779b9d491ab266d3a846846e7b |
| institution | Directory Open Access Journal |
| issn | 2666-1438 |
| language | English |
| last_indexed | 2024-04-13T06:13:11Z |
| publishDate | 2022-12-01 |
| publisher | Elsevier |
| record_format | Article |
| series | Latin American Journal of Central Banking |
| spelling | doaj.art-178d77779b9d491ab266d3a846846e7b2022-12-22T02:58:56ZengElsevierLatin American Journal of Central Banking2666-14382022-12-0134100077The effect of size and productivity on borrowing discouragement for small firms in ColombiaOscar Jaulín-Méndez0Department of Economics, Universidad Carlos III de Madrid, Madrid, SpainI estimate the effect micro firms’ size and productivity have on the probability of becoming a discouraged borrower: firms that do not use credit from the formal financial system despite needing it. I also estimate the effect that size and productivity have on the probability of becoming accepted in the event of a formal credit request. Using a trivariate probit model that corrects for selection biases, I find that productivity and size (number of employees) reduce the likelihood of becoming discouraged. Both variables are related to a higher probability of being accepted in formal credit requests.http://www.sciencedirect.com/science/article/pii/S266614382200031XG21G30C31 |
| spellingShingle | Oscar Jaulín-Méndez The effect of size and productivity on borrowing discouragement for small firms in Colombia Latin American Journal of Central Banking G21 G30 C31 |
| title | The effect of size and productivity on borrowing discouragement for small firms in Colombia |
| title_full | The effect of size and productivity on borrowing discouragement for small firms in Colombia |
| title_fullStr | The effect of size and productivity on borrowing discouragement for small firms in Colombia |
| title_full_unstemmed | The effect of size and productivity on borrowing discouragement for small firms in Colombia |
| title_short | The effect of size and productivity on borrowing discouragement for small firms in Colombia |
| title_sort | effect of size and productivity on borrowing discouragement for small firms in colombia |
| topic | G21 G30 C31 |
| url | http://www.sciencedirect.com/science/article/pii/S266614382200031X |
| work_keys_str_mv | AT oscarjaulinmendez theeffectofsizeandproductivityonborrowingdiscouragementforsmallfirmsincolombia AT oscarjaulinmendez effectofsizeandproductivityonborrowingdiscouragementforsmallfirmsincolombia |