Growth Model with Financial Deepening and Productivity Heterogeneity

Quoc Hung Nguyen

The Japanese Economic Review, 2019, vol. 70, issue 1, No 6, 123-140

Abstract: Abstract This paper studies the effects of financial deepening on growth dynamics and productivity in an economy where heterogeneous entrepreneurs face endogenous borrowing constraints. Quantitative results from a calibrated model suggest that 38% of Japan’s total factor productivity from 1961 to 1991 can be explained by the financial deepening effects and the convergence speed is 29% slower than that implied by neoclassical models. The present paper also theoretically shows that an economy with a higher degree of productivity heterogeneity is more likely to avoid the poverty trap and converge with a slower speed to its steady state.

Keywords: E10; E22; E44; 16 (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
http://link.springer.com/10.1111/jere.12180 Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
Journal Article: Growth Model with Financial Deepening and Productivity Heterogeneity (2019)
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:spr:jecrev:v:70:y:2019:i:1:d:10.1111_jere.12180

Ordering information: This journal article can be ordered from
https://www.springer.com/journal/42973

DOI: 10.1111/jere.12180

Access Statistics for this article

The Japanese Economic Review is currently edited by Michihiro Kandori

More articles in The Japanese Economic Review from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().