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Technology and Finance

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Author Info

  • Anna Ilyina
  • Roberto M. Samaniego

Abstract

The benefits from financial development are known to vary across industries. However, no systematic effort has been made to determine the technological characteristics that are shared by industries that tend to grow relatively faster in more financially developed countries. This paper explores a range of technological characteristics that might underpin differences across industries in the need or the ability to raise external funding. The main finding is that industries that grow faster in more financially developed countries tend to display greater R&D intensity or investment lumpiness, indicating that well-functioning financial markets direct resources towards industries that grow by performing R&D.

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Bibliographic Info

Paper provided by International Monetary Fund in its series IMF Working Papers with number 08/182.

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Length: 42
Date of creation: 01 Jul 2008
Date of revision:
Handle: RePEc:imf:imfwpa:08/182

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Related research

Keywords: Technology transfer; Industrial investment; Investment policy; Production growth; r & d; correlations; r & d intensity; standard errors; correlation; r & d intensive industries; r & d-intensive industries; equation; instrumental variables; r & d activity; estimation of equation; regression equation; standard deviation; survey; general equilibrium models; instrumental variable; statistical significance; statistics; financial statistics; research departments; role of r & d; research & development; research activity; outlier; surveys; equations; dummy variables; r & d investments; absorptive capacity; r & d expenditures; consistent estimator; cross-country variation; predictions;

This paper has been announced in the following NEP Reports:

References

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Citations

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Cited by:
  1. Jan Bena & Peter Ondko, 2009. "Financial Development and Allocation of External Finance," CERGE-EI Working Papers wp398, The Center for Economic Research and Graduate Education - Economic Institute, Prague.
  2. Anna Ilyina & Roberto M. Samaniego, 2009. "A Multi-Industry Model of Growth with Financing Constraints," IMF Working Papers 09/119, International Monetary Fund.
  3. Cipollina, Maria & Giovannetti, Giorgia & Pietrovito, Filomena & Pozzolo, Alberto Franco, 2011. "FDI and growth: what cross-country industry data say," Economics & Statistics Discussion Papers esdp11060, University of Molise, Dept. EGSeI.
  4. Roberto M. Samaniego, 2008. "Entry, Exit and Investment-Specific Technical Change," PIER Working Paper Archive 08-013, Penn Institute for Economic Research, Department of Economics, University of Pennsylvania.
  5. Rachel Ngai & Roberto Samaniego, 2011. "Accounting for Research and Productivity Growth Across Industries," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 14(3), pages 475-495, July.
  6. Samaniego, Roberto, 2009. "Financing Creative Destruction," MPRA Paper 22348, University Library of Munich, Germany.
  7. Venturini, Francesco, 2012. "Looking into the black box of Schumpeterian growth theories: An empirical assessment of R&D races," European Economic Review, Elsevier, vol. 56(8), pages 1530-1545.
  8. Gallego, Francisco A. & Tessada, José A., 2012. "Sudden stops, financial frictions, and labor market flows: Evidence from Latin America," Journal of Development Economics, Elsevier, vol. 97(2), pages 257-268.
  9. Toni Beutler & Mathieu Grobéty, 2011. "The Collateral Channel under Imperfect Debt Enforcement," Working Papers 11.11, Swiss National Bank, Study Center Gerzensee.
  10. L. Rachel Ngai & Roberto M. Samaniego, 2008. "Research and Productivity Growth Across Industries," LSE Research Online Documents on Economics 4410, London School of Economics and Political Science, LSE Library.
  11. Yu Sun, 2011. "Recent Developments in European Bank Competition," IMF Working Papers 11/146, International Monetary Fund.

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