TY  - BOOK
AU  - Calice,Pietro
AU  - Byskov,Steen
AU  - Calice,Pietro
AU  - Ribeiro,Eduardo P.
TI  - Efficient Financial Allocation and Productivity Growth in Brazil
PY  - 2018///
CY  - Washington, D.C.
PB  - The World Bank
KW  - Access to Credit
KW  - Administrative and Civil Service Reform
KW  - Banks and Banking Reform
KW  - Business Cycles and Stabilization Policies
KW  - Common Carriers Industry
KW  - Construction Industry
KW  - De Facto Governments
KW  - Democratic Government
KW  - Economic Forecasting
KW  - Economic Growth
KW  - Economic Theory and Research
KW  - Finance and Financial Sector Development
KW  - Food and Beverage Industry
KW  - General Manufacturing
KW  - Governance
KW  - Industrial Economics
KW  - Industry
KW  - Macroeconomic Management
KW  - Macroeconomics and Economic Growth
KW  - Misallocation
KW  - Plastics and Rubber Industry
KW  - Productivity
KW  - Public Credit
KW  - Pulp and Paper Industry
KW  - Social Protections and Labor
KW  - Textiles Apparel and Leather Industry
N2  - This paper attempts to study the impact of Brazilian Development Bank credit on resource misallocation in Brazil, using manufacturing firm-level data from 2003-14. The paper first estimates measures of resource misallocation based on Hsieh and Klenow (2009), documenting high variation in firms' capital and output distortions. It then estimates the effect of financial frictions and access to Brazilian Development Bank loans on distortions and their dispersions. The analysis finds some preliminary evidence that the use of Brazilian Development Bank credit is not associated with a more efficient allocation of resources. The lower cost of Brazilian Development Bank loans reduces the marginal cost of capital, as it induces firms to reallocate inputs from labor to capital, and this effect is amplified for more financially dependent firms. The findings, together with extant evidence on the economic additionality of the Brazilian Development Bank, suggest that there is room for improving the allocative efficiency of the earmarked credit system in Brazil
UR  - http://elibrary.worldbank.org/doi/book/10.1596/1813-9450-8479
ER  -