Financial Development and Technology

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dc.contributor.author Tadesse, Solomon en_US
dc.date.accessioned 2007-10-25T20:19:51Z
dc.date.available 2007-10-25T20:19:51Z
dc.date.issued 2007-06-01 en_US
dc.identifier.other RePEc:wdi:papers:2007-879 en_US
dc.identifier.uri http://hdl.handle.net/2027.42/57259 en_US
dc.description.abstract Research in development economics reveals that the bulk of cross-country differences in economic growth is attributable to differences in productivity. By some accounts, productivity contributes to more than 60 percent of countries’ growth in per capita GDP. I examine a particular channel through which financial development could explain cross-country and crossindustry differences in realized productivity. I argue that financial development induces technological innovations ñ a major stimulus of productivity - through facilitating capital mobilization and risk sharing. In a panel of industries across thirty eight countries, I find that financial development explains the cross-country differences in industry rates of technological progress, rates of real cost reduction and rates of productivity growth. I find that the effect of financial development on productivity and technological progress is heterogeneous across industrial sectors that differ in their needs for financing innovation. In particular, industries whose younger firms depend more on external finance realize faster rate of technological change in countries with more developed banking sector. en_US
dc.format.extent 1283476 bytes
dc.format.extent 1802 bytes
dc.format.mimetype application/pdf
dc.format.mimetype text/plain
dc.relation.ispartofseries 879 en_US
dc.subject Financial Development, Productivity Growth, Technological Progress, Innovation en_US
dc.subject.other G1, G21, G32, E44, O14, O31, O34, O4 en_US
dc.title Financial Development and Technology en_US
dc.type Working Paper en_US
dc.subject.hlbsecondlevel Economics en_US
dc.subject.hlbtoplevel Business en_US
dc.contributor.affiliationum William Davidson Institute en_US
dc.description.bitstreamurl http://deepblue.lib.umich.edu/bitstream/2027.42/57259/1/wp879 .pdf en_US
dc.owningcollname William Davidson Institute (WDI) - Working Papers
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