Investment financing and business growth: a comprehensive assessment of BNDES credit products in the 2008-2015 period

Abstract

BNDES plays an important role in providing credit for the productive development of Brazilian companies. The objective of this study is to provide an overview of the effects of BNDES’s four main credit products (BNDES Card, BNDES Finame, BNDES Automático, and BNDES Finem) on investment, growth, and productivity of supported firms. Data from 2008 to 2015 were analyzed, a period characterized by the expansion of the bank’s credit volume. To control for selection bias in support, the propensity score matching method was combined with difference-in-differences estimation. Overall, the evaluation found positive effects of BNDES support on most of the assessed dimensions, particularly in investment, employment, and revenues. Among the products, those aimed at supporting the isolated acquisition of goods and services (BNDES Card and BNDES Finame) stood out.