References of "Leon, Florian 50009661"
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See detailLong-term finance and entrepreneurship
Leon, Florian UL

in Economic Systems (in press)

This paper investigates whether long-term finance affects firm entry worldwide. We construct a new database on short-term and long-term credit provided by commercial banks to the private sector in 85 ... [more ▼]

This paper investigates whether long-term finance affects firm entry worldwide. We construct a new database on short-term and long-term credit provided by commercial banks to the private sector in 85 countries over the period 1995-2014. We then analyze whether differences in entrepreneurship are related to the provision of short-term and long-term bank credit. Data on entrepreneurship are extracted from two frequently used databases: the Global Entrepreneurship Monitoring dataset and the Entrepreneurship Database, each of which captures different aspects of firm creation. Econometric results indicate that long-term credit does not stimulate firm entry. By contrast, we find that short-term credit is positively related to firm creation, from birth to registration. Controlling for potential endogeneity by implementing an instrumental variables approach does not affect our conclusions. Our findings suggest that better provision of short-term credit allows entrepreneurs to apply for formal loan instead of having to rely exclusively on informal loans or internal funds. The absence of impact of long-term loans can be explained by the difficulty entrepreneurs face in getting access to long-term credit. [less ▲]

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See detailDo banks and microfinance institutions compete? Microevidence from Madagascar
Leon, Florian UL; Baraton, Pierrick

in Economic Development and Cultural Change (in press)

This paper examines whether the loan strategy of a microfinance institution is shaped by the entry of a bank. Specifically, we investigate whether the distance between a borrower of a microfinance ... [more ▼]

This paper examines whether the loan strategy of a microfinance institution is shaped by the entry of a bank. Specifically, we investigate whether the distance between a borrower of a microfinance institution and the closest bank influences loan conditions provided by the microfinance institution. We use an original panel dataset of 32,374 loans granted to 14,834 borrowers provided by one of the largest microfinance institutions in Madagascar between 2008 and 2014. We find that the closer a bank is located to a given MFI borrower, the larger the loan obtained and the less collateral required. We also find that the effect is stronger for clients that could be more easily caught by banks (i.e., large firms and clients without a previous relationship with the MFI). [less ▲]

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See detailCorruption and tax compliance: evidence from small retailers in Bamako, Mali
Bertinelli, Luisito UL; Bourgain, Arnaud UL; Leon, Florian UL

in Applied Economics Letters (in press)

We investigate the impact of corruption on tax compliance using a sample of 700 small business in Bamako, Mali. The main contribution of this paper is to focus on micro-enterprises (including semi-formal ... [more ▼]

We investigate the impact of corruption on tax compliance using a sample of 700 small business in Bamako, Mali. The main contribution of this paper is to focus on micro-enterprises (including semi-formal and informal ones), while existing works concentrate on large and formal firms. Our results show that (i) even very small firms pay taxes (two-thirds of firms pay taxes in our sample); and, (ii) paying bribes reduces significantly tax compliance. This latter finding is robust (i) to the addition of a set of control variables accounting for other determinants, (ii) to treatment for endogeneity, and (iii) the use of a different proxy for tax compliance. [less ▲]

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See detailRegional foreign banks and financial inclusion: Evidence from Africa
Leon, Florian UL; Zins, Alexandra

in Economic Modelling (in press)

Regional foreign banks expanded quickly over the past decade in developing and emerging countries and have a growing influence in banking systems. We question whether the development of African regional ... [more ▼]

Regional foreign banks expanded quickly over the past decade in developing and emerging countries and have a growing influence in banking systems. We question whether the development of African regional foreign banks, also called Pan-African banks, influences financial inclusion of firms and households. To this end, we combine the World Bank Global Findex database and the World Bank Enterprise Surveys with a hand-collected database on the presence of regional foreign banks. We find that Pan-African banks presence increases firms’ access to credit and limited evidence that they favor financial access of the middle class by restoring confidence in banks. We suggest that this impact is related to the adoption of an aggressive strategy aiming at gaining market shares rather than through the exploitation of informational and technological advantages. [less ▲]

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See detailThe provision of long-term credit and firm growth
Leon, Florian UL

E-print/Working paper (2019)

This paper investigates whether a higher level of long-term credit provision affects the growth of small and young firms. Firm-level data from more than 20,000 firms in 62 countries are combined with a ... [more ▼]

This paper investigates whether a higher level of long-term credit provision affects the growth of small and young firms. Firm-level data from more than 20,000 firms in 62 countries are combined with a new hand-collected database on short-term and long-term credit provided to the private sector. Using a difference-in-difference framework, our results indicate that, contrary to short-term credit, long-term credit does not stimulate growth of small and young firms. This finding is, at least partially, explained by the differential impact of short-term and long-term credit provision on small and young firms’ access to credit. While the provision of short-term credit alleviates credit constraints faced by small and young firms, a larger provision of longterm bank loans has an opposite impact. Our findings are in line with the hypothesis that an increase of long-term credit provision reflects a lender’s choice to provide more financing to existing clients (intensive margin) to the detriment of firms without previous access to finance (extensive margin). [less ▲]

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See detailInformation sharing, credit booms and financial stability: Do developing economies differ from advanced countries?
Leon, Florian UL; Guérineau, Samuel

in Journal of Financial Stability (2019), 40

This paper analyses the impact of credit information sharing on financial stability, drawing special attention to its interactions with credit booms. A probit estimation of financial vulnerability ... [more ▼]

This paper analyses the impact of credit information sharing on financial stability, drawing special attention to its interactions with credit booms. A probit estimation of financial vulnerability episodes—identified by jumps in the ratio of non-performing loans to total loans—is run for a sample of 159 countries divided into two sub-samples according to their level of development: 80 advanced or emerging economies and 79 less developed countries. The results show that: i) credit information sharing reduces financial fragility for both groups of countries; ii) for less developed countries, the main effect is the direct effect (reduction of NPL ratio once credit boom is controlled), suggesting a portfolio quality effect; iii) credit information sharing also mitigates the detrimental impact of a credit boom on financial fragility but this result holds only for advanced and emerging countries and for household credit booms; and iv) the depth of information sharing has a negative impact on the likelihood of credit booms (but not the coverage of IS). [less ▲]

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See detailHousehold credit and growth: International evidence
Leon, Florian UL

E-print/Working paper (2019)

This paper has two main objectives. First, it attempts to distinguish the effects of household and enterprise credit on economic growth for a large sample of developing and developed countries. Second, it ... [more ▼]

This paper has two main objectives. First, it attempts to distinguish the effects of household and enterprise credit on economic growth for a large sample of developing and developed countries. Second, it investigates the channels through which household credit affects economic growth. To do so, a new database covering 143 countries over the period 1995-2014 is employed. Econometric results show that household credit has a negative effect on growth, while business credit has a positive, albeit non significant, impact on growth. The literature provide two possible explanations to justify the negative effect of household credit. On the one hand, household credit expansion can induce more financial fragility. On the other hand, the negative impact of household credit could be explained by its effect on saving behaviors. Results provide some evidence indicating that the negative effect of household credit is more driven by the latter than the former. [less ▲]

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See detailRemittances and credit in developed and developing countries: A dynamic panel analysis
Leon, Florian UL; Fromentin, Vincent

in Research in International Business and Finance (2019), 48

This article investigates the impact of remittances on credit in 30 developing (low and middle income) countries and 27 developed (high-income) countries during the period of 2000-2014. This paper differs ... [more ▼]

This article investigates the impact of remittances on credit in 30 developing (low and middle income) countries and 27 developed (high-income) countries during the period of 2000-2014. This paper differs from existing literature in two ways. First, we distinguish the impact of remittances on credit in both the short run and the long run. Second, we investigate whether remittances influence credit provided to households and credit provided to firms differently, thanks to a new dataset. Our results indicate that (i) remittances have a positive impact on credit in the long run but no impact in the short run; (ii) remittances have a stronger effect on household credit than on firm credit in developing countries; and, (iii) remittances stimulate credit provision through firm credit in developed countries. [less ▲]

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See detailIslamic banking development and access to credit
Leon, Florian UL; Weill, Laurent

in Pacific-Basin Finance Journal (2018), 52

The recent expansion of Islamic banks raises questions on its economic implications. The aim of this paper is to investigate the impact of Islamic banking development on access to credit. We combine data ... [more ▼]

The recent expansion of Islamic banks raises questions on its economic implications. The aim of this paper is to investigate the impact of Islamic banking development on access to credit. We combine data from a unique hand-collected database that covers Islamic banks with firm-level data covering developing and emerging countries over the period of 2006 to 2009. We find that Islamic banking development has overall no impact on credit constraints, while banking development and conventional banking development alleviate obstacles to financing. However Islamic banking development exerts a positive impact on access to credit when conventional banking development is low. Hence we support the view that Islamic banking does not overall alleviate obstacles to financing, but it can act as substitute to conventional banking. [less ▲]

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See detailThe Credit Structure Database
Leon, Florian UL

E-print/Working paper (2018)

We describe a new publicly available dataset on credit structure across the world over the period 1995-2014. The database contains two modules. The first part reports the structure of bank loan by types ... [more ▼]

We describe a new publicly available dataset on credit structure across the world over the period 1995-2014. The database contains two modules. The first part reports the structure of bank loan by types of borrowers (households vs. firms). Data are available for 143 countries. Household credit is breakdown between mortgage loans and other household loans (credit cards, car loans, student loans, etc.). Firm credit is decomposed into six sectors (agriculture, industry, construction, transport, trade and other services). The second module contains credit by maturity for 85 countries. Short-term credit is defined as loans with a maturity of one year or less and long-term credit as loans whose maturity exceeds one year. Database is freely available and downlable in Excel and Stata format at the following link: https://sites.google.com/site/florianleon/research/data [less ▲]

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See detailConvergence of credit structure around the world
Leon, Florian UL

in Economic Modelling (2018), 68

This paper studies convergence of credit structure worldwide. We hand-collect data on credit to household and firm credit for 143 countries over the period 1995-2014. First, we separately document the ... [more ▼]

This paper studies convergence of credit structure worldwide. We hand-collect data on credit to household and firm credit for 143 countries over the period 1995-2014. First, we separately document the existence of a convergence process of total credit, household credit and firm credit, respectively. Second, we find that convergence of household credit occurs faster than firm credit, inducing a process of convergence of the share of household credit to total credit. Third, convergence occurs faster in low-income countries and in countries with a lower initial level of total credit but slows down after the 2008 global financial crisis. Finally, our data investigation does not support the idea that convergence is driven by changing conditions in developing countries. [less ▲]

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See detailDo banks and microfinance institutions compete? Microevidence from Madagascar
Leon, Florian UL; Baraton, Pierrick

E-print/Working paper (2018)

In recent years, both microfinance institutions (MFIs) and banks across the world have been converging towards the financing of small enterprises with high financing needs. This paper scrutinizes whether ... [more ▼]

In recent years, both microfinance institutions (MFIs) and banks across the world have been converging towards the financing of small enterprises with high financing needs. This paper scrutinizes whether banks and MFIs compete each other as a result of recent transformations in both industries. In doing so, we study whether the loan strategy of a microfinance institution is shaped by the local presence of a bank. Specifically, we investigate whether bank proximity influences loan conditions provided by one of the largest microfinance institutions in Madagascar. We employ an original panel dataset of 32,374 loans granted to 14,834 borrowers over the period 2008-2014. We find that the closer a bank is located to a given MFI borrower, the larger the loan obtained and the less collateral required. These results are insensitive to several robustness tests for possible endogeneity of distance, sample selection issue, and alternative specifications. In addition, findings are stronger for larger and more established (older) firms in line with our hypothesis. [less ▲]

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See detailLong-term finance and entrepreneurship
Leon, Florian UL

E-print/Working paper (2018)

This paper investigates whether long-term finance affects the firm entry across the world. We construct a new database on short-term and long-term credit provided by commercial banks to the private sector ... [more ▼]

This paper investigates whether long-term finance affects the firm entry across the world. We construct a new database on short-term and long-term credit provided by commercial banks to the private sector in 85 countries over the period 1995-2014. We then analyze whether differences in entrepreneurship are correlated with the provision of short-term and long-term bank credit. Data on entrepreneurship are extracted from two frequently used databases: the Global Entrepreneurship Monitoring dataset and Entrepreneurship Database, each of which captures different aspects of firm creation. Econometric results indicate that long-term credit does not stimulate the firm entry. On the contrary, we find that short-term credit exerts a positive impact at each stage of firm creation from activity birth to registration. Our findings are robust to a battery of sensitivity tests, including additional control variables, alternative dependent variables, alternative sample, and changes in econometric specification. Our findings suggest that better provision of short-term credit allows entrepreneurs to apply for a formal loan instead of relying exclusively on informal loans or internal funds, contrary to long-term loans [less ▲]

Detailed reference viewed: 57 (9 UL)
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See detailCorruption and tax compliance: Evidence from small retailers in Bamako, Mali
Bertinelli, Luisito UL; Bourgain, Arnaud UL; Leon, Florian UL

E-print/Working paper (2018)

We investigate the impact of corruption on tax compliance using a sample of 700 small business in Bamako, Mali. Our results show that paying bribes reduced tax compliance by almost ten percentage points.

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See detailImplications of loan portfolio concentration in Cambodia
Leon, Florian UL

in Economics Bulletin (2017), 37(1), 282-296

This paper explores how the composition of banks' loan portfolios affect banks operating in Cambodia. The implications of loan portfolio concentration has begun to attract attention in recent years ... [more ▼]

This paper explores how the composition of banks' loan portfolios affect banks operating in Cambodia. The implications of loan portfolio concentration has begun to attract attention in recent years. However, existing studies remain focus on developed or emerging countries because data in other developing countries are lacking. In this paper, we fill this gap by investigating the effects of loan portfolio concentration on Cambodian banks' return. We find that sectoral diversification is positively related to banks' returns. In addition, foreign banks and commercial banks are less affected by loan concentration than their counterparts. [less ▲]

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See detailEnterprise credit, household credit and growth: New evidence from 126 countries
Leon, Florian UL

E-print/Working paper (2016)

This paper attempts to distinguish the effects of household and enterprise credit on economic growth. To do so, I create a new, hand-collected database covering 143 countries over the period 1995-2014 ... [more ▼]

This paper attempts to distinguish the effects of household and enterprise credit on economic growth. To do so, I create a new, hand-collected database covering 143 countries over the period 1995-2014 (126 countries are employed for econometric analysis). Estimation results confirm recent evidence documenting the absence of the effect of total credit to growth. Findings also show that household credit has a negative effect on growth, but I fail to provide robust support for a positive effect of business credit. [less ▲]

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See detailFinancial Constraint, Entrepreneurship and Sectoral Migrations
Leon, Florian UL; Baraton, Pierrick

E-print/Working paper (2016)

Using an original database of over 3,000 micro and small enterprises (MSEs) that were microfinance institution (MFI) clients in Madagascar over the period of 2008-2014, we observe that around one third of ... [more ▼]

Using an original database of over 3,000 micro and small enterprises (MSEs) that were microfinance institution (MFI) clients in Madagascar over the period of 2008-2014, we observe that around one third of these entrepreneurs switched business sectors in the first five years after starting their business. We find that the probability of an entrepreneur’s changing sectors is highly correlated with the size of the first loan obtained from the MFI. This result survives multiple robustness checks, including treatment for endogeneity and attrition. We interpret this finding in terms of financial constraint: a lack of financing prevents an entrepreneur from initially investing in his first choice sector, causing him to change sectors only when he has become financially able to do so. This result challenges the classic distinction made between ”necessity entrepreneurs” and ”opportunity entrepreneurs” and raises important questions concerning entrepreneurial talent allocation. [less ▲]

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See detailInformation sharing, credit booms and financial stability
Leon, Florian UL; Guérineau, Samuel

E-print/Working paper (2016)

This paper analyzes the impact of credit information sharing on financial stability, drawing special attention to its interactions with credit booms. A probit estimation of financial vulnerability ... [more ▼]

This paper analyzes the impact of credit information sharing on financial stability, drawing special attention to its interactions with credit booms. A probit estimation of financial vulnerability episodes – identified by jumps of the ratio of non-performing loans to total loans, is run for a sample of 159 countries dividing in two sub-samples according to their level of development: 80 advanced or emerging economies and 79 less developed countries. The results show that: i) credit information sharing reduces financial fragility for both groups of countries; ii) for less developed countries, the main effect is the direct effect (reduction of NPL ratio once credit boom is controlled), suggesting a portfolio quality effect; iii) for advanced and emerging countries, credit information sharing (IS) also mitigates the detrimental impact of credit boom on financial fragility, iv) the depth of IS has an negative impact on the likelihood of credit booms (but not the coverage of IS). [less ▲]

Detailed reference viewed: 108 (17 UL)
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See detailIslamic Banking Development and access to credit
Leon, Florian UL; Weill, Laurent

E-print/Working paper (2016)

The recent expansion of Islamic banks raises questions on its economic implications. The aim of this paper is to investigate the impact of Islamic banking development on access to credit. We combine data ... [more ▼]

The recent expansion of Islamic banks raises questions on its economic implications. The aim of this paper is to investigate the impact of Islamic banking development on access to credit. We combine data from a unique hand-collected database that covers Islamic banks over the period of 2000 to 2005 with firm-level data covering developing and emerging countries. We find that Islamic banking development has overall no impact on credit constraints, while banking development and conventional banking development alleviate obstacles to financing. However Islamic banking development exerts a positive impact on access to credit when conventional banking development is low. Hence we support the view that Islamic banking does not overall alleviate obstacles to financing, but it can act as substitute to conventional banking. [less ▲]

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See detailDoes the expansion of regional cross-border banks affect competition in Africa? Indirect evidence
Leon, Florian UL

in Research in International Business and Finance (2016), 37

This article investigates how bank competition has evolved in Africa following the recent penetration and expansion of regional cross-border banks over the past decade. We examine changes in competition ... [more ▼]

This article investigates how bank competition has evolved in Africa following the recent penetration and expansion of regional cross-border banks over the past decade. We examine changes in competition in the banking industry of seven African countries highly affected by this recent phenomenon. The evolution of competition is evaluated through three different non-structural measures of competition (Lerner index, Panzar–Rosse model, and Boone indicator). With the exception of results from the Lerner index, our findings show an intensification of competition since the mid-2000s. This period corresponds to the rapid expansion of regional cross-border banks in the zone, indicating that this expansion has promoted competition in banking sectors in Africa. [less ▲]

Detailed reference viewed: 97 (15 UL)