Development finance increasingly funds entrepreneurship in developing countries, but evidence of its impact on entrepreneurship is mixed. Existing studies analyze total development finance flows as entrepreneurship-specific development finance data did not previously exist. By training and...

Development finance increasingly funds entrepreneurship in developing countries, but evidence of its impact on entrepreneurship is mixed. Existing studies analyze total development finance flows as entrepreneurship-specific development finance data did not previously exist. By training and...

This paper reassesses the role of financial frictions in capital misallocation through a model disciplined by both firm-level borrowing costs and the average revenue product of capital (ARPK). Using Chinese manufacturing data, we document substantial dispersion in ARPK, alongside a strong...