Collateral regimes and missing job creation in the MENA region

Frank Betz and Farshad R. Ravasan

No 2016/03, EIB Working Papers from European Investment Bank (EIB)

Abstract: The economies in the Middle East and North Africa have not been able to generate a sufficient number of jobs for a fast growing population. This paper uses data from the MENA Enterprise Survey to investigate the extent to which prevailing collateral practices affect the allocation of credit and firms' ability to expand and create jobs. Using matched bank-firm data to recover banks' collateral policies and exploiting data on the location of firms and bank branches, the paper aggregates the estimated collateral policies into branch-weighted indices that represent collateral practices at the local level. We find that less stringent collateral regimes are conducive to employment growth. Young firms in particular benefit from lower collateral ratios, while a greater willingness to accept movables benefits both young and old firms.

Date: 2016
New Economics Papers: this item is included in nep-ara and nep-ent
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
https://www.econstor.eu/bitstream/10419/144176/1/863303609.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:zbw:eibwps:201603

Access Statistics for this paper

More papers in EIB Working Papers from European Investment Bank (EIB) Contact information at EDIRC.
Bibliographic data for series maintained by ZBW - Leibniz Information Centre for Economics ().