The Impact of Credit Programs on the Post-Pandemic Reactivation of the Fabric of Production and Employment: The Case of Argentina

This technical paper seeks to narrow the knowledge gap concerning the impacts of financing and provision of credit to accelerate recovery and adjustments in the wake of a crisis. Due to the lack of data in developing countries, the literature surrounding evaluation of this type of program in Latin American and Caribbean countries is relatively recent and scarcer still is the measurement of the impact of such programs in the context of the crisis caused by the COVID-19 pandemic. This work analyzes the impact of credit programs on the recovery productive structure and employment throughout the entire territory of Argentina, using key economic variables, and distinguishing between the different instruments utilized. The results suggest that the programs did indeed help to increase the number of workers employed and their real wages in beneficiary firms during the first three quarters of 2021; moreover, they impacted the sustainability of these Argentinian firms, increasing their chances of survival.