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dc.titleFinancial Development and TFP Growth: Cross-Country and Industry-Level Evidence
dc.contributor.authorArizala, Francisco
dc.contributor.authorCavallo, Eduardo A.
dc.contributor.authorGalindo, Arturo
dc.contributor.orgunitDepartment of Research and Chief Economist
dc.coverageThe Caribbean
dc.coverageCentral America
dc.coverageSouth America
dc.date.available2011-02-07T00:00:00
dc.date.issue2009-06-09T00:00:00
dc.description.abstractThis 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.
dc.identifier.doihttp://dx.doi.org/10.18235/0010917
dc.identifier.urlhttps://publications.iadb.org/publications/english/document/Financial-Development-and-TFP-Growth-Cross-Country-and-Industry-Level-Evidence.pdf
dc.language.isoen
dc.mediumAdobe PDF
dc.publisherInter-American Development Bank
dc.subjectIndustrial Policy
dc.subjectFinancial Sector
dc.subject.jelcodeD24 - Production • Cost • Capital • Capital, Total Factor, and Multifactor Productivity • Capacity
dc.subject.jelcodeE44 - Financial Markets and the Macroeconomy
dc.subject.jelcodeO47 - Empirical Studies of Economic Growth • Aggregate Productivity • Cross-Country Output Convergence
dc.subject.keywordsWP-682
dc.typeWorking Papers
idb.identifier.pubnumberWorking Papers
idb.operationRG-K1097
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