Financial frictions and productivity: Firm-level evidence from Kazakhstan

Zarina Adilkhanova

No 23, NAC Analytica Working Paper from NAC Analytica, Nazarbayev University

Abstract: This paper studies the effect of financial frictions on firm-level total factor productivity in Kazakhstan using a large data set on medium and large enterprises from 2009 to 2017. We explain the effect of financial frictions on productivity growth and the microeconomic channels through which they may transmit to the real economy. The results demonstrate that productivity growth is vulnerable to debt growth due to the rising financial friction, which is helpful in understanding of reasons why financial crises lead to a persistent decline in economic activity.

Keywords: Total Factor Productivity (TFP); Financial Frictions; Debt Growth (search for similar items in EconPapers)
JEL-codes: D24 G30 O16 (search for similar items in EconPapers)
Pages: 21 pages
Date: 2021-12, Revised 2022-03
New Economics Papers: this item is included in nep-cfn, nep-eff and nep-fdg
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Persistent link: https://EconPapers.repec.org/RePEc:ajx:wpaper:23

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