International financial openness and industrial R&D
Sahar Milani () and
Rebecca Neumann ()
Additional contact information
Sahar Milani: St. Lawrence University
Economics Bulletin, 2018, vol. 38, issue 1, 490-500
International financial integration may provide an important channel of financing for research and development (R&D) that ultimately enhances economic growth. Following the analysis of Maskus et al. (2012), we examine the impact of refined measures of international financial openness and capital controls on R&D intensities in 23 manufacturing industries in 22 OECD countries for the period 1995-2009. We interact these country-level financial measures with industry characteristics: external financial dependence and asset tangibility. Our results indicate that the significance of FDI as an international financial development measure is driven primarily by external FDI assets, perhaps indicating that multinational firms are able to access R&D funds from affiliate firms abroad. De jure measures provide corroborating evidence that financial openness may be particularly important for industries with fewer tangible assets. By contrast, the availability of international portfolio debt increases R&D intensities for those industries that rely more on external financing.
Keywords: capital controls; capital openness; FDI; financial integration; R&D (search for similar items in EconPapers)
JEL-codes: F3 O3 (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:ebl:ecbull:eb-17-00575
Access Statistics for this article
More articles in Economics Bulletin from AccessEcon
Bibliographic data for series maintained by John P. Conley ().