Economic growth and funded pension systems
Growing pension savings lead to deeper capital markets. This can have a positive effect on economic growth by allowing firms that are more dependent on external finance to grow faster. We study this effect using data on 69 industrial sectors in 34 OECD countries for the period 2001-2010 through a difference-in-differences approach that interacts financial development with industry dependence on external finance. We take into account unobserved heterogeneity by including country-time, industry-time and industry-country fixed effects. We find a significant impact of higher level of pension savings on growth in sectors that are more dependent on external financing. The financial crisis does not significantly affect this relation.
|Date of creation:||Jul 2014|
|Date of revision:|
|Contact details of provider:|| Postal: Postbus 80510, 2508 GM Den Haag|
Phone: (070) 338 33 80
Fax: (070) 338 33 50
Web page: http://www.cpb.nl/
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Maurice Obstfeld., 1993.
"Risk-Taking, Global Diversification, and Growth,"
Center for International and Development Economics Research (CIDER) Working Papers
C93-016, University of California at Berkeley.
- Maurice Obstfeld, 1992. "Risk-Taking, Global Diversification, and Growth," NBER Working Papers 4093, National Bureau of Economic Research, Inc.
- Obstfeld, Maurice, 1992. "Risk-Taking, Global Diversification, and Growth," CEPR Discussion Papers 688, C.E.P.R. Discussion Papers.
- Maurice Obstfeld, 1992. "Risk-taking, global diversification, and growth," Discussion Paper / Institute for Empirical Macroeconomics 61, Federal Reserve Bank of Minneapolis.
- Klingebiel, Daniela & Kroszner, Randall S & Laeven, Luc, 2006.
"Banking Crises, Financial Dependence and Growth,"
CEPR Discussion Papers
5623, C.E.P.R. Discussion Papers.
- DellAriccia, Giovanni & Detragiache, Enrica & Rajan, Raghuram G, 2005.
"The Real Effect of Banking Crises,"
CEPR Discussion Papers
5088, C.E.P.R. Discussion Papers.
- Andrew A. Samwick, 2000. "Is Pension Reform Conducive to Higher Saving?," The Review of Economics and Statistics, MIT Press, vol. 82(2), pages 264-272, May.
- 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.
- Thorsten Beck & Tao Chen & Chen Lin & Frank M. Song, 2012. "Financial Innovation: The Bright and the Dark Sides," Working Papers 052012, Hong Kong Institute for Monetary Research.
- Bollinger, Christopher R. & Chandra, Amitabh, 2004.
"Iatrogenic Specification Error: A Cautionary Tale of Cleaning Data,"
IZA Discussion Papers
1093, Institute for the Study of Labor (IZA).
- Christopher R. Bollinger & Amitabh Chandra, 2005. "Iatrogenic Specification Error: A Cautionary Tale of Cleaning Data," Journal of Labor Economics, University of Chicago Press, vol. 23(2), pages 235-258, April.
- Christopher R. Bollinger & Amitabh Chandra, 2003. "Iatrogenic Specification Error: A Cautionary Tale of Cleaning Data," NBER Technical Working Papers 0289, National Bureau of Economic Research, Inc.
- Fabian Valencia & Luc Laeven, 2011.
"The Real Effects of Financial Sector Interventions During Crises,"
IMF Working Papers
11/45, International Monetary Fund.
- Luc Laeven & Fabián Valencia, 2013. "The Real Effects of Financial Sector Interventions during Crises," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 45(1), pages 147-177, 02.
- Jeannine Bailliu & Helmut Reisen, 1998.
"Do funded pensions contribute to higher aggregate savings? A cross-country analysis,"
Review of World Economics (Weltwirtschaftliches Archiv),
Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 134(4), pages 692-711, December.
- Jeanine Bailliu & Helmut Reisen, 1997. "Do Funded Pensions Contribute to Higher Aggregate Savings?: A Cross-Country Analysis," OECD Development Centre Working Papers 130, OECD Publishing.
- Stephen Cecchetti & Michael R King & James Yetman, 2011. "Weathering the financial crisis: good policy or good luck?," BIS Working Papers 351, Bank for International Settlements.
- Michiel Bijlsma & Gijsbert T. J. Zwart, 2013. "The changing landscape of financial markets in Europe, the United States and Japan," Working Papers 774, Bruegel.
- Raddatz, Claudio, 2003.
"Liquidity needs and vulnerability to financial udnerdevelopment,"
Policy Research Working Paper Series
3161, The World Bank.
- Raddatz, Claudio, 2006. "Liquidity needs and vulnerability to financial underdevelopment," Journal of Financial Economics, Elsevier, vol. 80(3), pages 677-722, June.
- Zandberg, Eelco & Spierdijk, Laura, 2013. "Funding of pensions and economic growth: are they really related?," Journal of Pension Economics and Finance, Cambridge University Press, vol. 12(02), pages 151-167, April.
- Davis, E. Philip & Hu, Yu-Wei, 2008. "Does funding of pensions stimulate economic growth?," Journal of Pension Economics and Finance, Cambridge University Press, vol. 7(02), pages 221-249, July.
When requesting a correction, please mention this item's handle: RePEc:cpb:discus:279. 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: ()
If references are entirely missing, you can add them using this form.