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

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

Scholarly Articles from Harvard University Department of Economics

Abstract: We use a French firm-level data set containing 13,000 firms over the period 1994–2004 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) R&D investment is countercyclical without credit constraints, but it becomes procyclical as firms face tighter credit constraints; (ii) this result is only observed for firms in sectors that depend more heavily upon external finance, or that are characterized by a low degree of asset tangibility; (iii) in more credit-constrained firms, R&D investment plummets during recessions but does not increase proportionally during upturns.

Date: 2012
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Citations: View citations in EconPapers (332)

Published in Journal of the European Economic Association

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http://dash.harvard.edu/bitstream/handle/1/1249063 ... %20from%20France.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 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)
Working Paper: Credit constraints and the cyclicality of R&D investment: Evidence from France (2008)
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Persistent link: https://EconPapers.repec.org/RePEc:hrv:faseco:12490632

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