Template-type: ReDIF-Paper 1.0

Author-Name: Balila Acurio
Author-Email: balila.acurio@bcrp.gob.pe
Author-Workplace-Name: Central Bank of Peru
Author-Workplace-Homepage:

Author-Name: Alessandro Tomarchio
Author-Email: alextom@umich.edu
Author-Workplace-Name: University of Michigan, Ann Arbor and Central Bank of Peru
Author-Workplace-Homepage:

Title: The Effects of Business Credit Support Programs: Evidence from a Regression Discontinuity Design
Abstract: Government-backed business loan programs have commonly been used as a policy tool for mitigating the impact of adverse scenarios such as the recent pandemic. However, the effects of these policies on micro, small and medium enterprises remain unclear, particularly in developing countries. Using firmlevel data and a Fuzzy Regression Discontinuity Design, we studied the impact of a large credit support program deployed in Peru in 2020 (Reactiva Perú). We examined real outcomes such as employment, sales, and survival. A positive and significant effect of the Reactiva loans on the number of employees was found; this effect continues to linger three years after the pandemic.
Keywords: government-backed loans; regression discontinuity; small and medium-sized enterprises; developing country; business loans; crisis
Classification-JEL: H81, E26, H32, G20

Length: 24 pages
Creation-Date:  2024-09-26
Revision-Date:
Publication-Status: 

Number: 20-2024
File-URL: http://repec.graduateinstitute.ch/pdfs/Working_papers/HEIDWP20-2024.pdf
File-Format: application/pdf
File-Size: 
Handle: RePEc:gii:giihei:HEIDWP20-2024