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| dc.title | Access to Credit and the Size of the Formal Sector in Brazil |
| dc.contributor.author | D'Erasmo, Pablo N. |
| dc.contributor.orgunit | Department of Research and Chief Economist |
| dc.coverage | Brazil |
| dc.date.available | 2013-05-09T00:00:00 |
| dc.date.issue | 2013-04-12T00:00:00 |
| dc.description.abstract | This paper studies the link between credit conditions and formalization in Brazil, as both credit and the rate of formalization have notably increased in the last decade. A firm dynamics model with endogenous formal and informal sectors is developed to quanti- tatively evaluate how much of the change in corporate credit and the size of the formal sector can be attributed to a reduction in the cost of financial intermediation. The model predicts that the observed reduction in intermediation costs generates an increase in the credit-to-output ratio and in the share of formal workers, in line with the data. It is found that-by affecting the corporate interest rate, the allocation of capital and the entry and exit rates-the change in credit conditions has important effects on firm size distribution and aggregate productivity. |
| dc.format.extent | 48 |
| dc.identifier.doi | http://dx.doi.org/10.18235/0011472 |
| dc.identifier.url | https://publications.iadb.org/publications/english/document/Access-to-Credit-and-the-Size-of-the-Formal-Sector-in-Brazil.pdf |
| dc.language.iso | en |
| dc.medium | Adobe PDF |
| dc.publisher | Inter-American Development Bank |
| dc.subject | Financial Service |
| dc.subject.jelcode | D24 - Production • Cost • Capital • Capital, Total Factor, and Multifactor Productivity • Capacity |
| dc.subject.jelcode | E26 - Informal Economy • Underground Economy |
| dc.subject.jelcode | L11 - Production, Pricing, and Market Structure • Size Distribution of Firms |
| dc.subject.jelcode | O16 - Financial Markets • Saving and Capital Investment • Corporate Finance and Governance |
| dc.subject.jelcode | O17 - Formal and Informal Sectors • Shadow Economy • Institutional Arrangements |
| dc.subject.keywords | IDB-WP-404, Financial Structure, Informal Sector, Productivity |
| dc.type | Working Papers |
| idb.identifier.pubnumber | Working Papers |
| idb.operation | RG-T1945 |