The determinants of credit restrictions and their impact on micro firms: the case of Colombia

Purpose This article analyzes the determinants of credit constraints and their effects on the productivity of micro-firms in Colombia. Design/methodology/approach An Endogenous Switching Regression Model (ESRM) is estimated to analyze credit constraint impact on economic performance. Findings The re...

Full description

Bibliographic Details
Main Authors: Mora, Jhon James, Espada Castro, Andres David
Format: Journal Article
Language:Inglés
Published: Emerald Publishing Limited 2024
Subjects:
Online Access:https://hdl.handle.net/10568/173671
_version_ 1855527557526454272
author Mora, Jhon James
Espada Castro, Andres David
author_browse Espada Castro, Andres David
Mora, Jhon James
author_facet Mora, Jhon James
Espada Castro, Andres David
author_sort Mora, Jhon James
collection Repository of Agricultural Research Outputs (CGSpace)
description Purpose This article analyzes the determinants of credit constraints and their effects on the productivity of micro-firms in Colombia. Design/methodology/approach An Endogenous Switching Regression Model (ESRM) is estimated to analyze credit constraint impact on economic performance. Findings The results show that owner characteristics such as age and gender decrease the likelihood of being constrained. Firms' characteristics, such as legal status, the formality of the employees, commercial property and savings, are important for reducing credit constraints. Originality/value This article discusses how formal credit restrictions harm the economic performance of Colombia's micro-firms. The results show that the productivity of the micro firms in Colombia could increase, on average, by U$ 825 USD when all types of restrictions are eliminated.
format Journal Article
id CGSpace173671
institution CGIAR Consortium
language Inglés
publishDate 2024
publishDateRange 2024
publishDateSort 2024
publisher Emerald Publishing Limited
publisherStr Emerald Publishing Limited
record_format dspace
spelling CGSpace1736712025-12-08T10:29:22Z The determinants of credit restrictions and their impact on micro firms: the case of Colombia Mora, Jhon James Espada Castro, Andres David agroforestry Purpose This article analyzes the determinants of credit constraints and their effects on the productivity of micro-firms in Colombia. Design/methodology/approach An Endogenous Switching Regression Model (ESRM) is estimated to analyze credit constraint impact on economic performance. Findings The results show that owner characteristics such as age and gender decrease the likelihood of being constrained. Firms' characteristics, such as legal status, the formality of the employees, commercial property and savings, are important for reducing credit constraints. Originality/value This article discusses how formal credit restrictions harm the economic performance of Colombia's micro-firms. The results show that the productivity of the micro firms in Colombia could increase, on average, by U$ 825 USD when all types of restrictions are eliminated. 2024-08-13 2025-03-18T06:47:24Z 2025-03-18T06:47:24Z Journal Article https://hdl.handle.net/10568/173671 en Limited Access Emerald Publishing Limited Mora, J.J.; Espada Castro, A.D. (2023) The determinants of credit restrictions and their impact on micro firms: the case of Colombia. Journal of Economic Studies 51(6): p. 1231 - 1246. ISSN: 0144-3585
spellingShingle agroforestry
Mora, Jhon James
Espada Castro, Andres David
The determinants of credit restrictions and their impact on micro firms: the case of Colombia
title The determinants of credit restrictions and their impact on micro firms: the case of Colombia
title_full The determinants of credit restrictions and their impact on micro firms: the case of Colombia
title_fullStr The determinants of credit restrictions and their impact on micro firms: the case of Colombia
title_full_unstemmed The determinants of credit restrictions and their impact on micro firms: the case of Colombia
title_short The determinants of credit restrictions and their impact on micro firms: the case of Colombia
title_sort determinants of credit restrictions and their impact on micro firms the case of colombia
topic agroforestry
url https://hdl.handle.net/10568/173671
work_keys_str_mv AT morajhonjames thedeterminantsofcreditrestrictionsandtheirimpactonmicrofirmsthecaseofcolombia
AT espadacastroandresdavid thedeterminantsofcreditrestrictionsandtheirimpactonmicrofirmsthecaseofcolombia
AT morajhonjames determinantsofcreditrestrictionsandtheirimpactonmicrofirmsthecaseofcolombia
AT espadacastroandresdavid determinantsofcreditrestrictionsandtheirimpactonmicrofirmsthecaseofcolombia