Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/249607 
Year of Publication: 
2022
Series/Report no.: 
BOFIT Discussion Papers No. 3/2022
Publisher: 
Bank of Finland, Bank of Finland Institute for Emerging Economies (BOFIT), Helsinki
Abstract: 
To analyze whether the occurrence of elections affects access to credit for firms, we perform an investigation using firm-level data covering 44 developed and developing countries. The results show that elections impair access to credit. Specifically, firms are more credit-constrained in election years and pre-election years as elections exacerbate political uncertainty. While lower credit demand is a tangible negative effect of elections, their occurrece per se does not seem to affect credit supply. We further establish that the design of political and financial systems affects how elections influence access to credit.
Subjects: 
elections
access to credit
credit constraints
JEL: 
G21
D72
O16
Persistent Identifier of the first edition: 
ISBN: 
978-952-323-401-7
Document Type: 
Working Paper

Files in This Item:
File
Size
900.35 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.