Interactions between Financial Constraints and Economic Growth

João Jerónimo (), José Assis de Azevedo, Pedro Neves and Maria João Thompson ()
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João Jerónimo: University of Minho
José Assis de Azevedo: University of Minho
Pedro Neves: Departamento de Gestão e Economia and CEFAGE-UBI, University of Beira Interior
Maria João Thompson: University of Minho and NIPE

No 15/2021, NIPE Working Papers from NIPE - Universidade do Minho

Abstract: Wishing to contribute theoretically to the understanding of the interactions between financial constraints and economic growth, we introduce financial dynamics in the R&D-based growth literature, by developing a generalization of Romer’s (1990) growth model, in which the original framework arises as a special case. We find that the overall effects of informational asymmetries on growth are negative, whilst asymptotically tending to null as our introduced financial parameter tends to zero.

Keywords: Financial constraints; Economic growth (search for similar items in EconPapers)
JEL-codes: C E (search for similar items in EconPapers)
Date: 2021
New Economics Papers: this item is included in nep-fdg and nep-gro
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Citations: View citations in EconPapers (1)

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