Access to bank credit and firm innovation in Egypt: New evidence from the World Bank enterprise survey
This study examines the impact of bank credit access on innovation among Egyptian firms, using data from 3,025 companies in the World Bank's 2020 Enterprise Survey. Employing logistic regression and propensity score matching, the study assesses how access to credit influences various types of i...
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| Format: | Article |
| Language: | English |
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Elsevier
2025-06-01
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| Series: | Sustainable Futures |
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| Online Access: | http://www.sciencedirect.com/science/article/pii/S2666188824002788 |
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| author | Ayoub Saadi Mariem Liouaeddine Hanan Amin Mohamed |
| author_facet | Ayoub Saadi Mariem Liouaeddine Hanan Amin Mohamed |
| author_sort | Ayoub Saadi |
| collection | DOAJ |
| description | This study examines the impact of bank credit access on innovation among Egyptian firms, using data from 3,025 companies in the World Bank's 2020 Enterprise Survey. Employing logistic regression and propensity score matching, the study assesses how access to credit influences various types of innovation, including R&D investment, acquisition of intellectual property, and new product creation. Results show that firms with bank credit are 67 % more likely to innovate, with a significant positive effect on R&D activities and intellectual property acquisition. Additionally, propensity score matching confirms a 5 % higher likelihood of innovation for firms with credit access, supporting the robustness of these findings. However, company size and sales volume are associated with decreased innovation likelihood, indicating constraints faced by larger firms and those with high sales. Competitive market conditions further enhance new product development probability by 42 %. Overall, the study highlights the crucial role of bank credit in fostering firm innovation in Egypt. |
| format | Article |
| id | doaj-art-f3fa1f9e368c4262bc8d40984e52b8f7 |
| institution | Kabale University |
| issn | 2666-1888 |
| language | English |
| publishDate | 2025-06-01 |
| publisher | Elsevier |
| record_format | Article |
| series | Sustainable Futures |
| spelling | doaj-art-f3fa1f9e368c4262bc8d40984e52b8f72025-01-04T04:57:03ZengElsevierSustainable Futures2666-18882025-06-019100430Access to bank credit and firm innovation in Egypt: New evidence from the World Bank enterprise surveyAyoub Saadi0Mariem Liouaeddine1Hanan Amin Mohamed2Faculty of Economics and Management, Ibn Tofaïl University, Kénitra, Morocco; Corresponding author.Faculty of Economics and Management, Ibn Tofaïl University, Kénitra, MoroccoFaculty of International Business and Humanities, Egypt-Japan University of Science and Technology, Alexandria, Egypt; Faculty of Commerce & Business Administration, Helwan University, Cairo, EgyptThis study examines the impact of bank credit access on innovation among Egyptian firms, using data from 3,025 companies in the World Bank's 2020 Enterprise Survey. Employing logistic regression and propensity score matching, the study assesses how access to credit influences various types of innovation, including R&D investment, acquisition of intellectual property, and new product creation. Results show that firms with bank credit are 67 % more likely to innovate, with a significant positive effect on R&D activities and intellectual property acquisition. Additionally, propensity score matching confirms a 5 % higher likelihood of innovation for firms with credit access, supporting the robustness of these findings. However, company size and sales volume are associated with decreased innovation likelihood, indicating constraints faced by larger firms and those with high sales. Competitive market conditions further enhance new product development probability by 42 %. Overall, the study highlights the crucial role of bank credit in fostering firm innovation in Egypt.http://www.sciencedirect.com/science/article/pii/S2666188824002788Bank creditInnovationLogistic regressionPropensity score matchingEgypt |
| spellingShingle | Ayoub Saadi Mariem Liouaeddine Hanan Amin Mohamed Access to bank credit and firm innovation in Egypt: New evidence from the World Bank enterprise survey Sustainable Futures Bank credit Innovation Logistic regression Propensity score matching Egypt |
| title | Access to bank credit and firm innovation in Egypt: New evidence from the World Bank enterprise survey |
| title_full | Access to bank credit and firm innovation in Egypt: New evidence from the World Bank enterprise survey |
| title_fullStr | Access to bank credit and firm innovation in Egypt: New evidence from the World Bank enterprise survey |
| title_full_unstemmed | Access to bank credit and firm innovation in Egypt: New evidence from the World Bank enterprise survey |
| title_short | Access to bank credit and firm innovation in Egypt: New evidence from the World Bank enterprise survey |
| title_sort | access to bank credit and firm innovation in egypt new evidence from the world bank enterprise survey |
| topic | Bank credit Innovation Logistic regression Propensity score matching Egypt |
| url | http://www.sciencedirect.com/science/article/pii/S2666188824002788 |
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