Financial Development and Technology Diffusion

Diego Comin and Ramana Nanda

No 15-036, Harvard Business School Working Papers from Harvard Business School

Abstract: We examine the extent to which financial market development impacts the diffusion of 16 major technologies, looking across 17 countries, from 1870 to 2000. We find that greater depth in financial markets leads to faster technology diffusion for more capital-intensive technologies, but only in periods closer to the invention of the technology. In fact, we find no differential effect of financial depth on the diffusion of capital-intensive technologies in the late stages of diffusion or in late adopters. Our results are consistent with a view that local financial markets play a critical role in facilitating the process of experimentation that is required for the initial commercialization and diffusion of technologies.

Keywords: banking; technology diffusion; experimentation; growth. (search for similar items in EconPapers)
Pages: 40 pages
Date: 2014-10, Revised 2018-12
New Economics Papers: this item is included in nep-fdg, nep-gro and nep-tid
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

Downloads: (external link)
http://www.hbs.edu/faculty/pages/download.aspx?name=15-036.pdf (application/pdf)

Related works:
Journal Article: Financial Development and Technology Diffusion (2019)
Working Paper: Financial Development and Technology Diffusion (2014)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:hbs:wpaper:15-036

Access Statistics for this paper

More papers in Harvard Business School Working Papers from Harvard Business School Contact information at EDIRC.
Bibliographic data for series maintained by HBS ().