SMEs' financing: Divergence across Euro area countries?

Le financement des PME: divergence entre les pays de la zone Euro ?

Sébastien Roux () and Frédérique Savignac ()
Additional contact information
Sébastien Roux: INSEE - Institut national de la statistique et des études économiques (INSEE), CREST-INSEE - Centre de Recherche en Economie et en Statistique - ENSAI - Ecole Nationale de la Statistique et de l'Analyse de l'Information [Bruz] - GENES - Groupe des Écoles Nationales d'Économie et Statistique - ENSAE Paris - École Nationale de la Statistique et de l'Administration Économique - GENES - Groupe des Écoles Nationales d'Économie et Statistique - IP Paris - Institut Polytechnique de Paris - INSEE - Institut national de la statistique et des études économiques (INSEE), INED - Institut national d'études démographiques
Frédérique Savignac: Banque de France

Working Papers from HAL

Abstract: This paper studies the divergence/convergence process of European countries as regard the financing behavior of small and medium sized enterprises. Using a firm level and country representative survey, we construct country-time indicators of SMEs' use of three external financing sources: bank loans, credit line/overdraft and trade credit. These indicators account for composition effects and demand effects. We find substantial differences between countries in the SMEs' use of the three financing sources. In particular, the cross-country differences related to SMEs' use of bank loans have significantly increased over the period 2010-2014. This divergence is not related to a global increase in the volatility of this use between countries. Instead, it has been driven by a sharper increase (resp decrease) in the countries where SMEs' use was initially higher (resp. lower). Finally, we investigate whether SMEs' uses of financing sources are correlated at the country level with various macroeconomic and banking structure indicators. The results suggest that indicators about banking concentration are good candidates to explain the cross-country divergence of SMEs' use of bank loans.

Keywords: credit constraints; bank financing; trade credit; institutional factors; contraintes de crédit; financements bancaires; crédit commercial; facteurs institutionnels (search for similar items in EconPapers)
Date: 2018-05
Note: View the original document on HAL open archive server: https://insee.hal.science/hal-05411917v1
References: Add references at CitEc
Citations:

Downloads: (external link)
https://insee.hal.science/hal-05411917v1/document (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:hal:wpaper:hal-05411917

Access Statistics for this paper

More papers in Working Papers from HAL
Bibliographic data for series maintained by CCSD ().