Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/304433 
Year of Publication: 
2024
Series/Report no.: 
Graduate Institute of International and Development Studies Working Paper No. HEIDWP20-2024
Publisher: 
Graduate Institute of International and Development Studies, Geneva
Abstract: 
Government-backed business loan programs have commonly been used as a policy tool for mitigating the impact of adverse scenarios such as the recent pandemic. However, the effects of these policies on micro, small and medium enterprises remain unclear, particularly in developing countries. Using firm-level data and a Fuzzy Regression Discontinuity Design, we studied the impact of a large credit support program deployed in Peru in 2020 (Reactiva Peru'). We examined real outcomes such as employment, sales, and survival. A positive and significant effect of the Reactiva loans on the number of employees was found; this effect continues to linger three years after the pandemic.
Subjects: 
government-backed loans
regression discontinuity
small and medium-sized enterprises
developing country
business loans
crisis
JEL: 
H81
E26
H32
G20
Document Type: 
Working Paper

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