BNDES credit, dependence on external finance, and R&D intensity in the Brazilian industrial sectors (1998-2014)
DOI:
https://doi.org/10.1590/0101-41615042epeKeywords:
BNDES credit, Dependence on external finance, R&D intensityAbstract
This paper aims to test if the BNDES plays a role compensating for potential credit market imperfections, in what concerns R&D investments. In order to do that, we employ a regression with interaction analysis inspired by Maskus et al. (2012). We use data on 22 Brazilian industrial sectors, having as sources the PINTEC, the BNDES and the PIA, covering 6 triennia from 1998 to 2014. Our results offer some support to the hypothesis of a positive BNDES role: the BNDES credit is more positively correlated with the R&D intensity in sectors/periods in which dependence on external financial capital is bigger.
Downloads
References
Aghion, Philippe, Stephen Bond, Alexander Klemm, and Ioana Marinescu. 2004. “Technology and financial structure: Are innovative firms different?” Journal of the European Economic Association 2(2-3): 277-288.
Aghion, Philippe; Nick Bloom ; Richard Blundell ; Rachel Griffith; Peter Howitt. “Competition and Innovation: an Inverted-U Relationship”. The Quarterly Journal of Economics, Volume 120, Issue 2, 1 May 2005, Pages 701–728.
Alves, P. e Silva, A.M. 2008. “Estimativa do Estoque de Capital das Empresas Industriais Brasileiras”. IPEA, TD No. 1325.
Ang., J.B., Jakob B. Madsen, Md. Rabiul Islam. “Catching up to the technology frontier: the dichotomy between innovation and imitation”. The Canadian Journal of Economics / Revue canadienne d'Economique 43, no.4 (November / novembre 2010), pp. 1389-1411.
Armendáriz De Aghion, Beatriz. 1999. ‘Development banking”. Journal of Development Economics 58: 83-100.
Bils, Mark; klenow, Peter J. 2000. “Does schooling cause growth?” American Economic Review 90, no. 5: 1160-1183.
Bond, Stephen; harhoff, Dietmar; Van Reenen, John. 2005. “Investment, R&D and financial constraints in Britain and Germany”. Annales d’Economie et de Statistique, n. 79/80: 433–460.
Bonomo, M.; Ricardo D. Brito e Bruno Martins. 2015. “The after crisis government-driven credit expansion in Brazil: A firm level analysis”. Journal of International Money and Finance 55.
Braun, M., 2003. “Financial contractibility and asset hardness”. Unpublished Working Paper. Harvard University.
Brown, J.R., Fazzari, S.M., Petersen, B.C., 2009. ‘Financing innovation and growth: cash flow, external equity, and the 1990s R&D boom”. The Journal of Finance 64: 151–185.
Carlin, W., Mayer, C., 2003. “Finance, investment, and growth”. Journal of Financial Economics 69: 191–226.
Cavalcanti, Tiago & Vaz, Paulo Henrique. 2017. "Access to long-term credit and productivity of small and medium firms: A causal evidence," Economics Letters, Elsevier, vol. 150(C), pages 21-25.
Correia de Souza, Eduardo; Rodrigo Menon Simões Moita. 2011. “Gasto em P&D e poder de mercado: teoria e evidência para o Brasil”. Pesquisa e Planejamento Econômico, volume 41 | número 1 | abril 2011.
DeNegri, Joao Alberto, Alessandro Maffioli, Cesar M. Rodriguez, and Gonzalo Vázquez. 2011. “The Impact of Public Credit Programs on Brazilian Firms. IDB-WP-293 December 2011.
Ferreira, Pedro Cavalcanti; Galvao Jr., Antonio F.; Gomes, Fabio Augusto Reis; Pessoa, Samuel de Abreu. 2010. “The effects of external and internal shocks on total factor productivity”. The Quarterly Review of Economics and Finance 50: 298-309.
Inklaar, Robert & Koetter, Michael, 2008. "Financial dependence and industry growth in Europe: Better banks and higher productivity," GGDC Research Memorandum GD-100, Groningen Growth and Development Centre, University of Groningen.
Klapper, Leora; Laeven, Luc; Rajan, Raghuram. 2006. “Entry regulation as a barrier to entrepreneurship”. Journal of Financial Economics 82: 591–629.
Lazzarini, Sergio G. & Musacchio, Aldo & Bandeira-de-Mello, Rodrigo & Marcon, Rosilene, 2015. "What Do State-Owned Development Banks Do? Evidence from BNDES, 2002–09," World Development, Elsevier, vol. 66(C), pages 237-253.
Machado, Luciano; Parreiras, Maria Araújo; Peçanha, Vinícius Rodrigues. “Avaliação de impacto do uso do Cartão BNDES sobre o emprego nas empresas de menor porte”. Biblioteca Digital do BNDES, 2011.
Machado, Luciano; Daniel da S. Grimaldi; Breno E. Albuquerque e Leonardo de O. Santos. “Additionality of Countercyclical Credit: Evaluating the Impact of BNDES’ PSI on the Investment of Industrial Firms”. Working Paper BNDES 2014.
Machado, Luciano; Ricardo A. Martini. “BNDES Effects on Firms' Innovation: Evidence from Brazilian Panel Data”. Working Paper BNDES 2019.
Maskus, Keith E.; Neumann, Rebecca; Seidel, Tobias. 2012. “How national and international financial development affect industrial R&D”. European Economic Review 56, no. 1: 72-83.
Ottaviano, Gianmarco I. P.; Sousa, Filipe L. “O efeito do BNDES na produtividade das empresas”. Brasília: IPEA, Políticas de Incentivo à Inovação Tecnológica., Cap. 9, p. 361-386, 2008.
Rajan, Raghuram G.; Zingales, Luigi. 1998. “Financial dependence and growth”. American Economic Review 88, no.3: 559–586.
Ribeiro, Eduardo P.; DeNegri, João A. 2009. “Public credit use and manufacturing productivity in Brazil”. ResearchGate.
Sousa, Filipe Lage de; Ottaviano, Gianmarco I. P. 2018. “Relaxing credit constraints in emerging economies: the impact of public loans on the productivity of Brazilian manufacturers”. Rio de Janeiro: Banco Nacional de Desenvolvimento Econômico e Social, 58 p. (Discussion papers; 124)
Stiglitz, Joseph E. 1994. The role of the state in financial markets (English). Washington, D.C.: The World Bank.
Downloads
Published
Issue
Section
License
Copyright (c) 2020 Eduardo Correia de Souza, Priscila Fernandes Ribeiro, Eduardo Souza Mattos
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
By submitting an article, the author authorizes its publication and attests that it has not been submitted to any other journal. The original article is considered final. Articles selected for publication are proofread for grammatical and orthographic errors. The journal does not pay rights for published articles. The Institute of Economic Research from the School of Economics, Business and Accounting of the University of São Paulo (Instituto de Pesquisas Econômicas da Faculdade de Economia, Administração e Contabilidade da Universidade de São Paulo) owns the journal's copyright.
