We study the effect of external financing constraint on job creation in emerging markets and developing countries (EMDC) at the firm level by looking at a specific transmission channel- the working capital channel. We develop a simple model to illustrate how the need for working capital...

Productivity growth in Italy has been persistently anemic and has lagged that of the euro area over the period 1999-2015, while the indebtedness of its corporate sector has increased. Using the ORBIS firm-level database, this paper studies the long-term impact of persistent corporate-debt...

This paper examines the response of firms to capital destruction, using a new measure of firmexposure to tropical storms as a negative exogenous shock on firms' capital stock. Drawing on apanel of Indian manufacturing firms between 1995 and 2006, we establish that, depending on theirstrength,...

We study the impact of bank credit on firm productivity. We exploit a matched firm-bankdatabase covering all the credit relationships of Italian corporations, together with a naturalexperiment, to measure idiosyncratic supply-side shocks to credit availability and to estimatea production model...

This paper investigates the impact of taxation on firm survival, using hazard models and a large-scale panel dataset on over 4 million nonfinancial firms from 21 countries over the period 1995-2015. We find ample evidence that a lower level of effective marginal tax rate improves firms' survival...

We build a new dataset of listed and private nonfinancial zombie firms for a large set of Advanced Economies and Emerging Markets over the last two decades. We find that the share of these unproductive and unviable firms has been rising worldwide, especially since the GFC and the Covid-19...

This paper uses granular customs data from France to investigate propagation of the COVID-19 shock along the supply chains in 2020. It quantifies the effect of the COVID-19 shock on trade adjustment and identifies mitigating and amplifying factors contributing to French firms’ heterogeneous...

The paper analyses the effect of the stock market on firm innovation through the lens of initial public offering (IPO) using uniquely matched Chinese firm-level data. We find that IPOs lead to an increase in both the quantity and quality of firm innovation activity. In addition, IPOs expand a...

This paper analyzes the effects of selected structural reforms on output and employment in the short and medium term. It uses a comprehensive cross-country firm-level dataset covering both advanced and emerging market economies over the period 2003-2014. In line with previous studies, it finds...

We show that too much meritocracy, modeled as accuracy of performance ranking incontests, can be a bad thing: in contests with homogeneous agents, it reduces output and isPareto inefficient. In contests with sufficiently heterogeneous agents, discouragement andcomplacency effects further reduce...