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Estimating conditional treatment effects of EIB lending to SMEs in Europe

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  • Barbera, Alessandro
  • Gereben, Aron
  • Wolski, Marcin

Abstract

We estimate heterogeneous treatment effects of the EIB financial support on European firms between 2008 and 2015. The relevant control groups are created with propensity score matching and the effects are estimated in a difference-in-differences framework, controlling for firm-level and country-sector-year fixed effects. We find that the positive effects of EIBsupported lending on job creation and investments were larger for smaller and younger firms. Moreover, we find evidence that longer maturities and more advantageous loan pricing are associated with larger employment and investment effects, while no larger impact is observed for larger loan volumes. Overall, the results suggest that benefits of the EIB support are rather observed on an intensive, rather than on an extensive, margin.

Suggested Citation

  • Barbera, Alessandro & Gereben, Aron & Wolski, Marcin, 2022. "Estimating conditional treatment effects of EIB lending to SMEs in Europe," EIB Working Papers 2022/03, European Investment Bank (EIB).
    • Handle: RePEc:zbw:eibwps:202203
    DOI: 10.2867/571551
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    Keywords

    climate action and environment; economics;

    JEL classification:

    • G38 - Financial Economics - - Corporate Finance and Governance - - - Government Policy and Regulation
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G23 - Financial Economics - - Financial Institutions and Services - - - Non-bank Financial Institutions; Financial Instruments; Institutional Investors

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