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Firm-Level Data and Monetary Policy: The Case of a Middle Income Country
Author:
Lahcen Bounader null

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Mohamed Doukali null

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Series:
IMF Working Papers
Volume/Issue:
Volume 2019: Issue 239
Language:
English
Publication Date:
01 Nov 2019
DOI:
https://doi.org/10.5089/9781513518862.001
ISBN:
9781513518862
ISSN:
1018-5941
Pages:
34
Keywords:
WP; firm; long-term debt; short-term debt; balance sheet response; reputation build-up; financing decision; debt variable; data scarcity; Financial statements; Loans; Collateral; Trade credits; Estimation techniques; Maghreb; Southern Europe
Legal-disclaimer:
IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.
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We test the existence of the balance sheet channel of monetary policy in a middle-income country. Firm-level data scarcity and quality, in such a context, make the identification of this channel a steep challenge. To circumvent this challenge, we use panel instrumental variables estimation with measurement error to analyze the financial statements of 58 500 Moroccan firms over the period 2010-2016. Our analysis confirms the existence of this channel. It shows that monetary policy has a significant impact on small and medium enterprises’ access to banks’ financing, and that firm-specific variables are key determinants of firms’ financing decisions.
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Cover IMF Working Papers
IMF Working Papers
ISSN:
1018-5941
Publisher:
International Monetary Fund