This paper examines the relationship between credit constraints − proxied by the investment-to-cash flow sensitivity – and firm-level economic performance − defined in terms of labor productivity – during the period 2009-2016, using a sample of 22,380 manufacturing firms from 11 European countries. It also assesses how regional institutional quality affects productivity at the level of the firm both directly and indirectly. The empirical results highlight that credit rationing is rife and represents a serious barrier for improvements in firm-level productivity and that this effect is far greater for micro and small than for larger firms. Moreover, high-quality regional institutions foster productivity and help mitigate the negative credit constraints-labor productivity relationship that limits the economic performance of European firms. Dealing with the European productivity conundrum thus requires greater attention to existing credit constraints for micro and small firms, although in many areas of Europe access to credit will become more effective if institutional quality is improved.

中文翻译：

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信贷约束、劳动生产率和区域机构的作用：欧洲制造企业的证据

本文使用来自 11欧洲国家。它还评估了区域制度质量如何直接和间接地影响公司层面的生产力。实证结果强调，信贷配给是普遍存在的，是提高企业生产力的严重障碍，而且这种影响对微型和小型企业的影响远大于对大型企业的影响。此外，高质量的区域机构促进生产力，并有助于缓解限制欧洲公司经济表现的负面信贷约束-劳动生产力关系。