Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/301964 
Year of Publication: 
2024
Series/Report no.: 
ADBI Working Paper No. 1459
Publisher: 
Asian Development Bank Institute (ADBI), Tokyo
Abstract: 
The paper explores the relationship between ICT adoption and credit behavior for small and medium enterprises in India. We use the latest round of the World Bank Enterprise Survey for India, conducted in 2021, and employ an instrumental variable estimation technique to account for any potential endogeneity between ICT adoption and credit behavior. We find that better ICT usage enhances the likelihood of obtaining credit and the size of credit for these firms. Additionally, it increases the likelihood of applying for loans and loan approvals. We also examine the result for micro firms in India and find confirmation of our findings. On exploring further, we find evidence that reduced information asymmetry, better financial awareness, innovation, and enhanced productivity are possible channels that improve access to credit for small and medium firms. The study underscores the role of ICT in reducing the credit constraints of small and medium enterprises.
Subjects: 
small and medium-sized enterprises
credit
information and communication technology
JEL: 
D22
O14
H81
L86
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by-nc-nd Logo
Document Type: 
Working Paper

Files in This Item:
File
Size





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