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Economic growth and funded pension systems

Author

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  • Michiel Bijlsma

    () (CPB Netherlands Bureau for Economic Policy Analysis)

  • Ferry Haaijen

    (CPB Netherlands Bureau for Economic Policy Analysis)

  • Casper van Ewijk

Abstract

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.

Suggested Citation

  • Michiel Bijlsma & Ferry Haaijen & Casper van Ewijk, 2014. "Economic growth and funded pension systems," CPB Discussion Paper 279, CPB Netherlands Bureau for Economic Policy Analysis.
  • Handle: RePEc:cpb:discus:279
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    References listed on IDEAS

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    More about this item

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • J26 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Retirement; Retirement Policies
    • O43 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Institutions and Growth

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