Credit Constraints and the Cyclicality of R&D Investment: Evidence from France

Philippe Aghion, Philippe Askenazy, Nicolas Berman (), Gilbert Cette and L. Eymard

Working papers from Banque de France

Abstract: We use a French firm-level panel data set over the period 1993-2004 to analyze the relationship between credit constraints and firms' R&D behavior over the business cycle. Our main results can be summarized as follows: (i) the share of R&D investment over total investment is countercyclical without credit constraints, but it becomes more procyclical as firms face tighter credit constraints; (ii) the result is magnified for firms in sectors that depend more heavily upon external finance; (iii) in more credit constrained firms, R&D investment share plummets during recessions but does not increase proportionally during upturns; (iv) average R&D investment and productivity growth are more negatively correlated with sales volatility in more credit constrained firms.

Keywords: Business cycles; R&D; Credit constraints; Volatility. (search for similar items in EconPapers)
JEL-codes: E22 E32 O16 O30 O32 (search for similar items in EconPapers)
Pages: 36 pages
Date: 2008
References: Add references at CitEc
Citations: View citations in EconPapers (114)

Downloads: (external link)
https://publications.banque-france.fr/sites/defaul ... travail_198_2008.pdf (application/pdf)

Related works:
Journal Article: CREDIT CONSTRAINTS AND THE CYCLICALITY OF R&D INVESTMENT: EVIDENCE FROM FRANCE (2012)
Working Paper: Credit Constraints and the Cyclicality of R&D Investment: Evidence from Micro Panel data (2012)
Working Paper: Credit Constraints and the Cyclicality of R&D Investment: Evidence from France (2012)
Working Paper: Credit Constraints and the Cyclicality of R&D Investment: Evidence from France (2012)
Working Paper: Credit Constraints and the Cyclicality of R&D Investment: Evidence from France (2012)
Working Paper: Credit constraints and the cyclicality of R&D investment: Evidence from France (2008)
Working Paper: Credit constraints and the cyclicality of R&D investment: Evidence from France (2008)
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:bfr:banfra:198

Access Statistics for this paper

More papers in Working papers from Banque de France Banque de France 31 Rue Croix des Petits Champs LABOLOG - 49-1404 75049 PARIS. Contact information at EDIRC.
Bibliographic data for series maintained by Michael brassart ().