The Impact of the Financial Crisis on UK Company Performance

| Publication date: 24 Jun 2014 | Theme: Trade, Investment & Productivity | NIESR Author(s): Riley, R | External Author(s): Young, G

A banking crisis may inhibit efficient resource allocation across businesses

  • Using firm level data we can examine whether aggregate productivity weakness arises because of resource misallocation between existing firms and/or a lack of creative destruction or cleansing effect of recession

And may hinder investment growth

  • Using firm level data we can measure these effects by comparing credit constrained bank dependent firms to similar firms that do not rely on bank finance or that were not credit constrained