Structural Change and Financing Constraints
نویسندگان
چکیده
In a multi-industry growth model, firms require external funds to conduct productivityenhancing R&D, and face financing constraints. The cost of research differs across industries, so that financing constraints hinder productivity growth in some industries more than in others. Equilibrium industry dynamics map into a differences-indifferences regression specification where industry growth depends on the interaction between country financial development and industry R&D intensity. The paper provides a framework for interpreting several empirical results that rely on industry growth data in terms of R&D-induced technology transfer, and identifies a new channel for finance to encourage aggregate growth: the reallocation of resources towards sectors with rapidly-expanding technological frontiers. JEL Codes: G18, O14, O16, O33, O47.
منابع مشابه
A Model of Structural Change under Financing Constraints
In a multi-industry growth model, firms require external funds to conduct productivityenhancing R&D, and are limited by financing constraints. The cost of research differs across industries, so financing constraints hinder productivity growth in some industries more than in others. Equilibrium industry dynamics map into a differences-indifferences regression specification where industry growth ...
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