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PRWP

Reproducibility package for Firm Credit Constraints And Electronic Payments: A Global Analysis

2025
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Reference ID
RR_WLD_2025_492
Author(s)
Davide Salvatore Mare, Subika Farazi, Manuel Galilea
Collections
World Bank Policy Research Working Papers
Metadata
JSON
Created on
Jan 05, 2026
Last modified
Jan 05, 2026
  • Overview
  • Reproducibility Package
  • Description
  • Scope and coverage
  • Disclaimer
  • Access and rights
  • Contacts
  • Information on metadata

    • Overview

    Abstract

    Understanding the drivers of credit constraints is essential for fostering private sector development and firm growth. In this study, we examine the channels through which electronic payments influence firm credit constraints across 101 economies. We explore heterogeneity at both the firm and aggregate levels to identify key policy and environmental factors that shape this relationship. Our findings indicate that payment digitalization plays a critical role in alleviating firm credit constraints, particularly for small firms and in economies with weaker credit infrastructure and lower levels of financial development. These results support the view that electronic payments help reduce information asymmetries between firms and lenders, thereby improving lending opportunities.

    Reproducibility Package

    Scripts
    Get Reproducibility Package
    File name
    RR_WLD_2025_492
    Zip package
    RR_WLD_2025_492.zip
    Title
    Reproducibility package for Firm Credit Constraints And Electronic Payments: A Global Analysis
    Date
    2025-11
    Dependencies
    Stata dependencies are listed in the ado folder.
    Instructions
    See README in reproducibility package.
    Notes
    Computational reproducibility verified by Development Impact (DECDI) Analytics team, World Bank.
    Source code repository
    Repository name URI
    Reproducible Research Repository (World Bank) https://reproducibility.worldbank.org
    Software
    Name
    Stata
    Version
    18 MP

    Reproducibility

    Technology environment

    Paper exhibits were reproduced on a computer with the following specifications:
    • OS: Windows 11 Enterprise
    • Processor: INTEL(R) XEON(R) PLATINUM 8562Y+ 2.80 GHz (4 processors)
    • Memory available: 32.0 GB
    Technology requirements

    Run time: ~ 25 minutes
    Reproduction instructions
    1. Secure Access to Data: Access the datasets not included in the package. See subsection Datasets and the README for more details.
    2. Download and Place Data: Once the data is accessed, users should place it in the appropriate folder.
    3. Run the Package: After placing the data in the folder, run the files in the order:
      • Update the global in line 13 of the do-file "main" to your folder's location and run the do-file.

    Since all the data is not included, the package includes the results produced by replicators. These files can be used to review the results presented in the paper.

    Data

    Datasets
    Name
    World Bank Enterprise Survey
    Note
    Follow the instructions in the README to download the data. Files: Data/Raw/New_Comprehensive_May_5_2025.dta
    Access policy
    Publicly available but cannot be redistributed.
    License URL
    https://www.enterprisesurveys.org/en/citing-the-data
    Citation
    World Bank Enterprise Surveys, www.enterprisesurveys.org. Accessed May 2025
    Name
    International Standard Industrial Classification
    Note
    Author compiled using the document linked below. Files: Data/Raw/ISIC_code.dta
    Access policy
    Publicly available and included in the package.
    Data URL
    https://unstats.un.org/unsd/publication/seriesm/seriesm_4rev4e.pdf
    Citation
    United Nations. Statistical Division. (2008).International Standard Industrial Classification of All Economic Activities (ISIC) Revision 4. New York :United Nations. Accessed 2025.
    Name
    Country level Indicators
    Note
    This dataset was compiled by the author using publicly available indicators from multiple sources: (1) Business Ready (World Bank) – Financial Services Indicators, Pillar II: Accessibility of Information in Credit Infrastructure (2.1 Operation of Credit Bureaus and Registries). Access: https://www.worldbank.org/en/businessready/data. (2) IMF Financial Development Index – Aggregate Financial Development Index, 2021. Access: https://data.imf.org/en/datasets/IMF.MCM:FDI. (3) GDP per Capita – IMF World Economic Outlook Database, October 2024 (constant prices, PPP, 2021 international dollars). Access: https://www.imf.org/en/publications/weo/weo-database/2024/october. (4) Income Group – World Bank Income Classification, 2023. Access: https://datahelpdesk.worldbank.org/knowledgebase/articles/906519-world-bank-country-and-lending-groups. (5) GDP Deflator – IMF World Economic Outlook Database, October 2024. Access: https://www.imf.org/en/publications/weo/weo-database/2024/october/select-countries?grp=2001&sg=All%20countries. (6) Local Currency Units per USD – IMF World Economic Outlook Database, October 2024 (Implied PPP Conversion Rate). Access: https://www.imf.org/en/publications/weo/weo-database/2024/october. Files: Data/Raw/Country_Level_Vars.dta
    Access policy
    Publicly available and included in the package.
    Citation
    Author compilation. 2025. Country-Level Variables Dataset, constructed using data from World Bank Business Ready, World Bank World Development Indicators, IMF Financial Development Index, and IMF World Economic Outlook Database. Accessed 2025.
    Name
    Informal Economy Database
    Note
    Multiple indicators multiple causes model-based (MIMIC) estimates of informal output (% of official GDP) for the year 2020 was extracted from the downloaded data. Files: Data/Raw/MIMIC_p_2020.dta
    Access policy
    Publicly available and included in the package.
    License URL
    https://www.worldbank.org/en/about/legal/terms-of-use-for-datasets
    Data URL
    https://www.worldbank.org/en/research/brief/informal-economy-database
    Citation
    Elgin, C., M. A. Kose, F. Ohnsorge, and S. Yu. 2021. "Understanding Informality", C.E.P.R. Discussion Paper 16497, Centre for Economic Policy Research, London
    Data statement

    All data sources are publicly available but not all are included in the reproducibility package.

    Description

    Output
    Type
    Working Paper
    Title
    Firm Credit Constraints And Electronic Payments: A Global Analysis
    Description
    Policy Research Working Papers (PRWP)
    Authors
    Author Affiliation Email
    Davide Salvatore Mare World Bank; University of Edinburgh Business School dmare@worldbank.org
    Subika Farazi World Bank sfarazi@worldbank.org
    Manuel Galilea cAsociaci´on de Bancos mg4437@columbia.edu
    Date of production

    2025-11-21

    Scope and coverage

    Geographic locations
    Location Code
    World WLD
    Keywords
    Financial Digitalization Technology Economic Growth Financial Frictions Financial Inclusion
    Topics
    ID Topic Parent topic ID Vocabulary Vocabulary URI
    C83 Survey Methods • Sampling Methods C8 Journal of Economic Literature (JEL)
    D20 General D2 Journal of Economic Literature (JEL)
    G10 General G1 Journal of Economic Literature (JEL)
    G20 General G2 Journal of Economic Literature (JEL)
    O12 Microeconomic Analyses of Economic Development 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
    Modified BSD3 https://opensource.org/license/bsd-3-clause/

    Contacts

    Contacts
    Name Affiliation Email
    Davide Salvatore Mare World Bank; University of Edinburgh Business School dmare@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

    2025-11-21
    Document version

    1
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