EconPapers    
Economics at your fingertips  
 

The Direct and Indirect Effects of Small Business Administration Lending on Growth: Evidence from U.S. County-Level Data

Andrew Young (), Matthew Higgins (), Donald J. Lacombe and Briana Sell

No 20543, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: Conventional wisdom suggests that small businesses are innovative engines of Schumpetarian growth. However, as small businesses, they are likely to face credit rationing in financial markets. If true then policies that promote lending to small businesses may yield substantial economy-wide returns. We examine the relationship between Small Business Administration (SBA) lending and local economic growth using a spatial econometric framework across a sample of 3,035 U.S. counties for the years 1980 to 2009. We find evidence that a county's SBA lending per capita is associated with direct negative effects on its income growth. We also find evidence of indirect negative effects on the growth rates of neighboring counties. Overall, a 10% increase in SBA loans per capita is associated with a cumulative decrease in income growth rates of about 2%.

JEL-codes: C31 E65 H25 O47 R11 (search for similar items in EconPapers)
Date: 2014-10
New Economics Papers: this item is included in nep-ent, nep-gro and nep-mac
Note: PE PR
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed

Downloads: (external link)
http://www.nber.org/papers/w20543.pdf (application/pdf)

Related works:
Working Paper: The Direct and Indirect Effects of Small Business Administration Lending on Growth: Evidence from U.S. County-Level Data (2014) Downloads
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:nbr:nberwo:20543

Ordering information: This working paper can be ordered from
http://www.nber.org/papers/w20543

Access Statistics for this paper

More papers in NBER Working Papers from National Bureau of Economic Research, Inc National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.. Contact information at EDIRC.
Bibliographic data for series maintained by ().

 
Page updated 2021-10-16
Handle: RePEc:nbr:nberwo:20543