TY  - GEN
AU  - Arizala, Francisco
AU  - Cavallo, Eduardo A.
AU  - Galindo, Arturo
TI  - Financial Development and TFP Growth: Cross-Country and Industry-Level Evidence
PY  - 2011
Y1  - 2011/02/07
DO  - 10.18235/0010917
AB  - 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.
UR  - https://doi.org/10.18235/0010917
ER  -