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Department of Economics Seminar
Dr Oana Peia
University College Dublin School of Economics
Did bank lending stifle innovation in Europe during the Great Recession? 
(with Davide Romelli, Trinity College Dublin)
Date: Friday 8th February, 14h00-15h00
Venue: Kemmy Business School, KB1-11
All are welcome to attend.
Oana Peia joined UCD School of Economics in September 2017. Previously, she was an associate lecturer in ESSEC Business School in Paris and a visiting lecturer in Bocconi University in Milan.  She obtained a PhD from ESSEC Business School and THEMA University of Cergy-Pontoise in 2017. Her research is at the intersection of finance and macroeconomics with an emphasis on the role that financial intermediaries play in the real economy. Her research interests include banking and financial crises, investment, financial frictions, economic growth, global games and experimental economics.
Using the 2008-09 Global financial crisis and the 2012 Euro area sovereign debt crisis as natural experiments, we investigate the effects of contractions in credit supply on R&D spending in a large sample of European firms. Our identification strategy exploits differences in financial constraints across firms, as well as the cross-industry variation in dependence on external finance to identify a causal effect of bank credit supply on firm investment in innovation. We show that firms that are more likely financially constrained, in industries more dependent on external finance, have a disproportionally lower growth rate of R&D spending, as well as lower R&D intensity and share of R&D investment in total investment during periods of tight credit supply. These results are robust to different proxies of financial constraints, model specifications and fixed-effects identification strategies.
Department of Economics Seminars