Local growth and access to credit: Theory and evidence

Boubacar Diallo; Omar Al-Titi

doi:10.1016/j.jmacro.2017.07.005

Local growth and access to credit: Theory and evidence

Boubacar Diallo^*, Omar Al-Titi

^*Corresponding author for this work

Department of Accounting and Finance

Research output: Contribution to journal › Article › peer-review

11 Scopus citations

Abstract

We theoretically and empirically investigate the effects of access to credit on local growth using a Schumpeterian growth model and assuming monopolistic competition between differentiated products of the banking system. We show that access to credit exerts a positive effect on local economic growth. To validate the theoretical prediction we use data on firms and bank branches from 18 emerging European economies.

Original language	English
Pages (from-to)	410-423
Number of pages	14
Journal	Journal of Macroeconomics
Volume	54
DOIs	https://doi.org/10.1016/j.jmacro.2017.07.005
State	Published - Dec 2017

Bibliographical note

Publisher Copyright:
© 2017 Elsevier Inc.

Keywords

Access to credit
Eastern europe
Monopolistic competition
Schumpeterian growth

ASJC Scopus subject areas

Economics and Econometrics

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

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10.1016/j.jmacro.2017.07.005

Cite this

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title = "Local growth and access to credit: Theory and evidence",

abstract = "We theoretically and empirically investigate the effects of access to credit on local growth using a Schumpeterian growth model and assuming monopolistic competition between differentiated products of the banking system. We show that access to credit exerts a positive effect on local economic growth. To validate the theoretical prediction we use data on firms and bank branches from 18 emerging European economies.",

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T2 - Theory and evidence

AU - Diallo, Boubacar

AU - Al-Titi, Omar

PY - 2017/12

Y1 - 2017/12

N2 - We theoretically and empirically investigate the effects of access to credit on local growth using a Schumpeterian growth model and assuming monopolistic competition between differentiated products of the banking system. We show that access to credit exerts a positive effect on local economic growth. To validate the theoretical prediction we use data on firms and bank branches from 18 emerging European economies.

AB - We theoretically and empirically investigate the effects of access to credit on local growth using a Schumpeterian growth model and assuming monopolistic competition between differentiated products of the banking system. We show that access to credit exerts a positive effect on local economic growth. To validate the theoretical prediction we use data on firms and bank branches from 18 emerging European economies.

KW - Access to credit

KW - Eastern europe

KW - Monopolistic competition

KW - Schumpeterian growth

UR - https://www.scopus.com/pages/publications/85025449461

U2 - 10.1016/j.jmacro.2017.07.005

DO - 10.1016/j.jmacro.2017.07.005

M3 - Article

AN - SCOPUS:85025449461

SN - 0164-0704

VL - 54

SP - 410

EP - 423

JO - Journal of Macroeconomics

JF - Journal of Macroeconomics

ER -

Local growth and access to credit: Theory and evidence

Abstract

Bibliographical note

Keywords

ASJC Scopus subject areas

UN SDGs

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