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PDF_logo Access to Credit and Productivity of Enterprises in Bangladesh:Is there Causality?

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Access to Credit and Productivity of Enterprises in Bangladesh:Is there Causality?


Paper No:20

Author:M. A Baqui Khalily and Md. Abdul Khaleque

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Pages:40

This paper establishes a relationship between access to credit and the factor productivity of enterprises using the data collected through a nationally representative household survey conducted by InM in 2010. The survey data show that about 32 per cent of the households have at least one enterprise and some of the enterprises have received credit from different sources such as formal institutions, microfi nance institutions, and informal lenders, and hence they have some access to credit. Notwithstanding, it is found that many enterprises are credit-constrained, and so it is plausible that credit constraint or credit rationing affects the productivity of the enterprises.

 
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