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Financial Development and Technology

dc.contributor.authorTadesse, Solomonen_US
dc.date.accessioned2007-10-25T20:19:51Z
dc.date.available2007-10-25T20:19:51Z
dc.date.issued2007-06-01en_US
dc.identifier.otherRePEc:wdi:papers:2007-879en_US
dc.identifier.urihttps://hdl.handle.net/2027.42/57259en_US
dc.description.abstractResearch 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.extent1283476 bytes
dc.format.extent1802 bytes
dc.format.mimetypeapplication/pdf
dc.format.mimetypetext/plain
dc.relation.ispartofseries879en_US
dc.subjectFinancial Development, Productivity Growth, Technological Progress, Innovationen_US
dc.subject.otherG1, G21, G32, E44, O14, O31, O34, O4en_US
dc.titleFinancial Development and Technologyen_US
dc.typeWorking Paperen_US
dc.subject.hlbsecondlevelEconomicsen_US
dc.subject.hlbtoplevelBusinessen_US
dc.contributor.affiliationumWilliam Davidson Instituteen_US
dc.description.bitstreamurlhttp://deepblue.lib.umich.edu/bitstream/2027.42/57259/1/wp879 .pdfen_US
dc.owningcollnameWilliam Davidson Institute (WDI) - Working Papers


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