Do companies that benefit from development banks’ funding invest more? New evidence from Brazil by Matheus da Costa Gomes, Mauricio Ribeiro do Valle published by Economic Modelling (10/2023).
This study analyzes the effects of funding from the Brazilian Development Bank (BNDES) on corporate investments considering beneficiary companies’ social engagement. Previous studies have examined these effects only from an industrial perspective, where increased investment is mandatory, neglecting social initiatives. We explore a sample of 2515 companies between 2002 and 2019 through a panel event study with two-way fixed effects. We estimate models using a control group and subsamples of beneficiary companies based on a social variable that indicates more/less social engagement. The evidence shows that the BNDES’s impact on investments after treatment is heterogeneous: socially engaged companies (usually utility companies) did not increase investments, while companies without social engagement (companies undergoing growth and transformation) invested more. Thus, the criticism that the BNDES does not impact investment can be wrong if examined without considering the social perspective. These findings mainly guide policymakers in formulating and evaluating public policies guided by state-owned development banks.
Entre o “E” e o “S” do BNDES: Crítica de que o banco não impacta investimentos deve levar em conta a perspectiva social por Matheus Gomes publicado por Valor Econômico (3/2024).
“A conclusão é de que a análise do BNDES precisa ser feita para além dos impactos econômicos, e as críticas também. O principal banco de desenvolvimento do Brasil entrega muito mais do que o debate público parece indicar.”
