The limits of lending: Banks and technology adoption across Russia

Cagatay Bircan, Ralph de Haas

Research output: Contribution to journalArticleScientificpeer-review

21 Citations (Scopus)

Abstract

We exploit historically determined variation in local credit markets to identify the impact of bank lending on innovation across Russian firms. We find that deeper credit markets increase firms' use of bank credit, their adoption of new products and technologies, and their productivity growth. This relationship is more pronounced in industries farther from the technological frontier, more exposed to import competition, and that export more. These impacts are also stronger for firms near historical R&D centers or railways and in regions with supportive institutions. Consistent with these results, credit markets contribute to economic growth in such regions. Authors have furnished a data set, which is available on the Oxford University Press Web site next to the link to the final published paper online.

Original languageEnglish
Article numberhhz060
Pages (from-to)536-609
Number of pages74
JournalReview of Financial Studies
Volume33
Issue number2
Early online dateJun 2019
DOIs
Publication statusPublished - Feb 2020

Keywords

  • credit constraints
  • firm innovation
  • technological change

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