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Reproducibility package for Do Formal Loans Boost SME Performance? Key Takeaways From A Meta-Analysis

2026
Get Reproducibility Package
Reference ID
PP_WLD_2026_724
Author(s)
Miriam Bruhn, Johan Andrey Ortega, Claudia Ruiz Ortega
Collections
Journal articles
Metadata
JSON
Created on
Oct 08, 2026
Last modified
Oct 14, 2026
Page views
17
Downloads
8
  • Overview
  • Reproducibility Package
  • Description
  • Scope and coverage
  • Disclaimer
  • Access and rights
  • Contacts
  • Information on metadata

    • Overview

    Abstract

    This paper conducts a meta-analysis of 24 studies evaluating the impact of formal loans on small and medium-sized enterprise performance. Using a Bayesian hierarchical model, the paper estimates that formal loans increase small and medium-sized enterprise employment by 12 percent, sales by 18.3 percent, and profits by 17.6 percent. Subgroup analyses show that the effects of credit on employment are larger when loans are issued by public rather than private banks, and the effects are broadly similar across firm size, country income levels, and guarantee structures. The larger impact of public bank loans suggests that private lenders’ profit-maximizing incentives may not always align with providing funds to the most credit-constrained firms that have the highest returns to capital.

    Reproducibility Package

    Scripts
    Get Reproducibility Package
    File name
    PP_WLD_2026_724
    Zip package
    PP_WLD_2026_724.zip
    Title
    Reproducibility package for Do Formal Loans Boost SME Performance? Key Takeaways From A Meta-Analysis
    Date
    2026-09
    Dependencies
    R dependencies are listed in the file renv.lock.
    Instructions
    See README in reproducibility package.
    Notes
    Computational reproducibility verified by Development Impact (DECDI) Analytics team, World Bank. This reproducibility package corresponds to the journal article version of the paper. A separate reproducibility package for the working paper version is available and can be accessed here: https://reproducibility.worldbank.org/catalog/296/
    Source code repository
    Repository name URI
    Reproducible Research Repository (World Bank) https://reproducibility.worldbank.org
    Software
    Name
    R
    Version
    4.5.1

    Reproducibility

    Technology requirements

    Runtime: 1 hour

    Reproduction instructions

    To successfully reproduce the analysis, follow these steps:

    • Open the Reproducibility Package.Rproj
    • Run 00-main.R after updating the directory.

    Data

    Datasets
    Name
    Compilation of Studies on Formal Loans for Small and Medium Enterprises (SMEs)
    Note
    Source: Author's Compiled Data Filenames: Exchange Rates.xls, Input_Data.xlsx, CLASS_B.xlsx For more details, refer to the README.
    Access policy
    Data is publicly available and included in the reproducibility package.
    Citation
    Authors' compilation. 2026. “Compilation of Studies on Formal Loans for Small and Medium Enterprises (SMEs)” [dataset]. Compiles and synthesizes data from multiple studies on formal loans for SMEs.
    Data statement

    All data sources are publicly available and included in the reproducibility package.

    Description

    Output
    Title
    Do Formal Loans Boost SME Performance? Key Takeaways From A Meta-Analysis
    Authors
    Author Affiliation Email
    Miriam Bruhn World Bank mbruhn@worldbank.org
    Johan Andrey Ortega World Bank jortegahernandez@worldbank.org
    Claudia Ruiz Ortega World Bank cruizortega@worldbank.org
    Date of production

    2026-09-03

    Scope and coverage

    Geographic locations
    Location Code
    World WLD
    Keywords
    Bank Loans Smes Job Creation
    Topics
    ID Topic Parent topic ID Vocabulary Vocabulary URI
    G21 Banks • Depository Institutions • Micro Finance Institutions • Mortgages G2 Journal of Economic Literature (JEL)
    G28 Government Policy and Regulation G2 Journal of Economic Literature (JEL)
    O12 Microeconomic Analyses of Economic Development O1 Journal of Economic Literature (JEL)
    O16 Financial Markets • Saving and Capital Investment • Corporate Finance and Governance O1 Journal of Economic Literature (JEL)

    Disclaimer

    Disclaimer

    The materials in the reproducibility packages are distributed as they were prepared by the staff of the International Bank for Reconstruction and Development/The World Bank. The findings, interpretations, and conclusions expressed in this event do not necessarily reflect the views of the World Bank, the Executive Directors of the World Bank, or the governments they represent. The World Bank does not guarantee the accuracy of the materials included in the reproducibility package.

    Access and rights

    License
    Name URI
    MIT License https://opensource.org/license/mit
    World Bank IGO Rider https://github.com/worldbank/metadata-editor/blob/main/WB-IGO-RIDER.md

    Contacts

    Contacts
    Name Affiliation Email
    Miriam Bruhn World Bank mbruhn@worldbank.org
    Reproducibility WBG World Bank reproducibility@worldbank.org

    Information on metadata

    Producers
    Name Abbreviation Affiliation Role
    Reproducibility WBG DECDI World Bank - Development Impact Department Verification and preparation of metadata
    Date of Production

    2026-09-03
    Document version

    1
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