A Multi-industry Model of Growth with Financing Constraints /
This paper develops a multi-industry growth model in which firms require external funds to conduct productivity-enhancing R and D. The cost of research is industry-specific. The tightness of financing constraints depends on the level of financial development and on industry characteristics. Over tim...
| Main Author: | |
|---|---|
| Other Authors: | |
| Format: | Journal |
| Language: | English |
| Published: |
Washington, D.C. :
International Monetary Fund,
2009.
|
| Series: | IMF Working Papers; Working Paper ;
No. 2009/119 |
| Online Access: | Full text available on IMF |
| Summary: | This paper develops a multi-industry growth model in which firms require external funds to conduct productivity-enhancing R and D. The cost of research is industry-specific. The tightness of financing constraints depends on the level of financial development and on industry characteristics. Over time, a financially constrained economy may converge to the growth path of a frictionless economy, so long as an industry with the fastest expanding technological frontier does not permanently fall behind due to low R and D. The model's industry dynamics map into a differences-in-differences regression, in which industry growth depends on the interaction between financial development and industry level R and D intensity. |
|---|---|
| Item Description: | <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required |
| Physical Description: | 1 online resource (52 pages) |
| Format: | Mode of access: Internet |
| ISSN: | 1018-5941 |
| Access: | Electronic access restricted to authorized BRAC University faculty, staff and students |