Template-Type: ReDIF-Paper 1.0

Author-Name: Evguenia Bessonova

Author-Email: : BessonovaEV@cbr.ru.

Author-Workplace-Name: Bank of Russia, Russian Federation


Author-Name: Levon Movsesyan

Author-Email: MovsesyanLS@mail.cbr.ru

Author-Workplace-Name: Bank of Russia, Russian Federation


Author-Name: Anna Tsvetkova

Author-Email: TsvetkovaAN@mail.cbr.ru

Author-Workplace-Name: Bank of Russia, Russian Federation



Title: Long-term financing, investment and innovation-related growth



Abstract: This study analyses the impact of access to debt finance on Russian firms’ productivity 
growth and exit patterns. Using survey data (BEEPS V) we investigate the relationship
between bank loans, innovation and firms’ performance. We find that innovation activity
per se does not lead to Russian firms’ stronger productivity growth and does not reduce
the risk of exit in the period of unstable economic situation in 2013–2015. 
Inverseprobability-weighted regression-adjustment (IPWRA) estimators show that long-term bank
loans help firms improve productivity but only if they engage in innovation activity. The
positive effect of debt finance on the likelihood of staying in the market comes from the
group of large enterprises which are not involved in innovation activities. It could be a sign
of an ineffective reallocation of financial resources towards large enterprises not
necessarily showing higher productivity growth rates. At the same time, firms engaging in
more sophisticated innovation stay on the market longer if they manage to obtain longterm loans.

Length: 29 pages

Creation-Date: 2021-11

Revision-Date:

Publication-Status:

File-URL: https://www.cbr.ru/statichtml/file/131059/wp_84.pdf

File-Format: Application/pdf

File-Function:

Number:wps84

Classification-JEL:  D24, G30, O30.

Keywords:  Productivity growth, Access to finance, Innovation, Exit

Handle:RePEc:bkr:wpaper:wps84