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Finance and the Diffusion of Digital Technologies

Listed author(s):
  • Bruno Caprettini

    ()

    (Università di Roma “La Sapienza”)

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    The paper examines how different dimensions of financial development have influenced firms’ willingness to adopt new digital technologies (IT). To do so, it introduces an econometric analysis based on an Error Correction Model run over a panel of fifteen industrialized countries. The results point to the importance of stock market development and suggest that market-based systems encourage digital investments better than bank-based ones. The evidence is consistent with theories that stress the effective selection of projects carried out by stock markets and the positive role that new financial tools traded within these markets had on IT adoption.

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    File URL: http://www.rivistapoliticaeconomica.it/2008/nov-dic/pdf/Caprettini_en.pdf
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    Article provided by SIPI Spa in its journal Rivista di Politica Economica.

    Volume (Year): 98 (2008)
    Issue (Month): 6 (November-December)
    Pages: 79-122

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    Handle: RePEc:rpo:ripoec:v:98:y:2008:i:6:p:79-122
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    1. Acemoglu, Daron & Aghion, Philippe & Zilibotti, Fabrizio, 2002. "Distance to Frontier, Selection, and Economic Growth," CEPR Discussion Papers 3467, C.E.P.R. Discussion Papers.
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    8. Lerner, Josh, 1995. " Venture Capitalists and the Oversight of Private Firms," Journal of Finance, American Finance Association, vol. 50(1), pages 301-318, March.
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    11. Pier Carlo Padoan & Fabio Mariani, 2006. "Growth and Finance, European Integration and the Lisbon Strategy," Journal of Common Market Studies, Wiley Blackwell, vol. 44(1), pages 77-112, 03.
    12. Allen, Franklin & Gale, Douglas, 1998. "Diversity of Opinion and Financing of New Technologies," Working Papers 98-29, C.V. Starr Center for Applied Economics, New York University.
    13. Blangiewicz, Maria & Charemza, Wojciech W, 1990. "Cointegration in Small Samples: Empirical Percentiles, Drifting Moments and Customized Testing," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 52(3), pages 303-315, August.
    14. Hicks, J. R., 1969. "A Theory of Economic History," OUP Catalogue, Oxford University Press, number 9780198811633, December.
    15. Levine, Ross, 1996. "Financial development and economic growth : views and agenda," Policy Research Working Paper Series 1678, The World Bank.
    16. Beck, Thorsten & Levine, Ross & Loayza, Norman, 2000. "Finance and the sources of growth," Journal of Financial Economics, Elsevier, vol. 58(1-2), pages 261-300.
    17. Christopoulos, Dimitris K. & Tsionas, Efthymios G., 2004. "Financial development and economic growth: evidence from panel unit root and cointegration tests," Journal of Development Economics, Elsevier, vol. 73(1), pages 55-74, February.
    18. Erik Brynjolfsson & Loren Hitt & Shinkyu Yang, 2002. "Intangible Assets: How the Interaction of Computers and Organizational Structure Affects Stock Market Valuations," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 33(1), pages 137-198.
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