Ingredients for the New Economy: How Much does finance matter?

Matteo Bugamelli, Patrizio Pagano (), Francesco Patern� (), Alberto Pozzolo, Fabiano Schivardi and Salvatore Rossi ()
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Francesco Patern�: Bank of Italy, Economic Research Department
Salvatore Rossi: Bank of Italy, Economic Research Department

No 418, Temi di discussione (Economic working papers) from Bank of Italy, Economic Research and International Relations Area

Abstract: Both macro and (still scarce) micro evidence support the idea that a new economy is emerging in the US, not (yet) in Europe. Some have argued that the inadequacies of Europe�s financial system are an important part of the explanation. This paper, after surveying the existing literature on the new productive paradigm and on the related financial aspects, both in the US and in Europe (in Italy in particular), claims that financing the new economy has more to do with traditional firms investing in ICT than with the creation of new firms in ICT-producing sectors. Saying that finance is a major obstacle in Europe to the development of the new economy may be an overstatement, though countries, like Italy, where the average size of firms is small are probably facing specific difficulties.

Keywords: growth accounting; information and communication technologies; firm organization; human capital; financing policies. (search for similar items in EconPapers)
JEL-codes: D24 G32 L23 O16 O30 O47 (search for similar items in EconPapers)
Date: 2001-10
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Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:bdi:wptemi:td_418_01

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