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dc.titleAccess to Credit and the Expansion of Broadband Internet in Peru
dc.contributor.authorCusato, Antonio
dc.contributor.authorCastillo, José Luis
dc.contributor.authorIDB Invest
dc.contributor.orgunitDepartment of Research and Chief Economist
dc.contributor.orgunitStrategic Development Effectiveness Division
dc.coveragePeru
dc.date.available2023-06-22T00:06:00
dc.date.issue2023-06-22T00:06:00
dc.description.abstractWe exploit the staggered expansion of the internet broadband network to firms and bank branches locations in Peru during the last decade to study non-financial firm performance and bank credit dynamics. Access to broadband unleashes firm growth, increases the chances of entry of firms and reduces the probability of exit in benefited locations. For those firms that had a borrowing relation with a bank before the expansion of broadband, the increase in sales serves as a signal to banks about their profitability, which in turn respond by providing more credit. Entry and exit from the credit market follows a similar pattern as in the case of firms, but the results take longer to materialize after the shock. We can disentangle supply and demand effects, since there is a group of firms and bank branches with different locations and asymmetrical timing for the availability of the technology. Our analysis highlights the importance of the demand channel in the reduction of the observed interest rates, which is consistent with the fact that our credit market results are concentrated among micro and small firms, and firms with thin credit files, which are often perceived as riskier.
dc.format.extent34
dc.identifier.doihttp://dx.doi.org/10.18235/0004959
dc.identifier.urlhttps://publications.iadb.org/publications/english/document/Access-to-Credit-and-the-Expansion-of-Broadband-Internet-in-Peru.pdf
dc.language.isoen
dc.publisherInter-American Development Bank
dc.subjectFinancial Inclusion
dc.subjectPublic Transport
dc.subjectSmall Business
dc.subjectTaxation
dc.subjectBroadband Service
dc.subjectEducational Institution
dc.subjectEconomy
dc.subjectScience and Technology
dc.subjectPopulation Aging
dc.subjectInternet
dc.subjectSocial Norm
dc.subjectBank Loan
dc.subjectPublic Service
dc.subjectInterest Rate
dc.subjectCredit Market
dc.subjectInvestment
dc.subject.jelcodeO33 - Technological Change: Choices and Consequences • Diffusion Processes
dc.subject.jelcodeL86 - Information and Internet Services • Computer Software
dc.subject.jelcodeG21 - Banks • Depository Institutions • Micro Finance Institutions • Mortgages
dc.subject.keywordsCompliance;accountability;Norms;Sanctions;Argentina
idb.identifier.pubnumberIDB-WP-01449
idb.operationRG-K1198
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