IDEAS home Printed from https://ideas.repec.org/p/bdi/wptemi/td_418_01.html
   My bibliography  Save this paper

Ingredients for the New Economy: How Much does finance matter?

Author

Listed:
  • Matteo Bugamelli

    () (Bank of Italy, Economic Research Department)

  • Patrizio Pagano

    () (Bank of Italy, Economic Research Department)

  • Francesco Patern�

    () (Bank of Italy, Economic Research Department)

  • Alberto Franco Pozzolo

    () (Bank of Italy, Economic Research Department)

  • Fabiano Schivardi

    () (Bank of Italy, Economic Research Department)

  • Salvatore Rossi

    () (Bank of Italy, Economic Research Department)

Abstract

Both macro and (still scarce) micro evidence support the idea that a new economy is emerging in the US, not (yet) in Europe. Some have argued that the inadequacies of Europe�s financial system are an important part of the explanation. This paper, after surveying the existing literature on the new productive paradigm and on the related financial aspects, both in the US and in Europe (in Italy in particular), claims that financing the new economy has more to do with traditional firms investing in ICT than with the creation of new firms in ICT-producing sectors. Saying that finance is a major obstacle in Europe to the development of the new economy may be an overstatement, though countries, like Italy, where the average size of firms is small are probably facing specific difficulties.

Suggested Citation

  • Matteo Bugamelli & Patrizio Pagano & Francesco Patern� & Alberto Franco Pozzolo & Fabiano Schivardi & Salvatore Rossi, 2001. "Ingredients for the New Economy: How Much does finance matter?," Temi di discussione (Economic working papers) 418, Bank of Italy, Economic Research and International Relations Area.
  • Handle: RePEc:bdi:wptemi:td_418_01
    as

    Download full text from publisher

    File URL: http://www.bancaditalia.it/pubblicazioni/temi-discussione/2001/2001-0418/tema_418_01.pdf
    Download Restriction: no

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Domenico Delli Gatti & Mauro Gallegati, 2004. "Weird Ties? : Growth, Cycles and Firms Dynamics in an Agent Based-Model with Financial Market Imperfections," Computing in Economics and Finance 2004 288, Society for Computational Economics.
    2. Chiara Oldani, 2005. "L'impatto della New Economy sull'attività bancaria italiana: un'analisi qualitativa," Finance 0504001, EconWPA.
    3. Hyytinen, Ari & Pajarinen, Mika (ed.), . "Financial Systems and Firm Performance. Theoretical and Empirical Perspectives," ETLA B, The Research Institute of the Finnish Economy, number 200, June.
    4. Domanski, Dietrich, 2003. "Idiosyncratic Risk in the 1990s: Is It an IT Story?," WIDER Working Paper Series 007, World Institute for Development Economic Research (UNU-WIDER).

    More about this item

    Keywords

    growth accounting; information and communication technologies; firm organization; human capital; financing policies.;

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • L23 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Organization of Production
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bdi:wptemi:td_418_01. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (). General contact details of provider: http://edirc.repec.org/data/bdigvit.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.