Firm-Level Data and Monetary Policy: The Case of a Middle Income Country

Lahcen Bounader, Mohamed Doukali

Research output: Working paper


We test the existence of the balance sheet channel of monetary policy in a middle-income country. Firm-level data scarcity and quality, in such a context, make the identification of this channel a steep challenge. To circumvent this challenge, we use panel instrumental variables estimation with measurement error to analyze the financial statements of 58 500 Moroccan firms over the period 2010-2016. Our analysis confirms the existence of this channel. It shows that monetary policy has a significant impact on small and medium enterprises’ access to banks’ financing, and that firm-specific variables are key determinants of firms’ financing decisions.
Original languageEnglish
PublisherInternational Monetary Fund
Number of pages34
Publication statusPublished - 1 Nov 2019

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