Journal of Monetary Economics volume 59, issue 2, P166-179 2012 DOI: 10.1016/j.jmoneco.2011.12.002 View full text
Anna Ilyina, Roberto Samaniego

Abstract: AbstractIn 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 …

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