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 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.

Date: 2012
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Published in Journal of the European Economic Association

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http://dash.harvard.edu/bitstream/handle/1/3075281 ... _and_cyclicality.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:30752812

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