@misc{10089,
title = {Financial Development and TFP Growth: Cross-Country and Industry-Level Evidence},
author = {Arizala, Francisco and Cavallo, Eduardo A. and Galindo, Arturo},
year = {2011},
doi = {10.18235/0010917},
abstract = {This paper estimates the impact of financial development on industry-level total factor productivity (TFP) growth using a largely unexploited panel of 77 countries with data for 26 manufacturing industries for the years 1963 to 2003. A significant relationship is found between financial development and industry-level TFP growth when controlling for country-time and industry-time fixed effects. The results are both statistically and economically significant. TFP growth can accelerate up to 0.6 percent per year, depending on the external finance requirement of industries, following a one standard deviation increase in financial development. The results are robust to different samples and specifications.},
url = {https://doi.org/10.18235/0010917}
}