EconPapers    
Economics at your fingertips  
 

Finance, Investment and Growth

Wendy Carlin () and Colin Mayer ()

No 2233, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: This paper evaluates relations between industrial activity and the structure of countries' financial, ownership and legal systems. Using data on 27 industries in 14 OECD countries over the period 1970 to 1995, we evaluate whether the structure of countries' systems is associated with different types of economic activity. We do this by examining whether there is a link between industry activity and the interaction of country structures with industry characteristics. We find that there is a relation in terms of both industry growth rates and shares of output devoted to R&D. Investment in R&D rather than fixed capital formation appears to be the main route through which financial systems affect economic activity. Consistent with theories of financial development, relations between financial systems and economic activity are sensitive to countries' stages of economic development. For example, bank oriented systems are associated with higher growth of externally financed industries in low but not high income countries.

Keywords: Financial Systems; Growth; Investment; Legal Form; Ownership (search for similar items in EconPapers)
JEL-codes: E2 G3 O4 (search for similar items in EconPapers)
Date: 1999-09
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (106)

Downloads: (external link)
http://www.cepr.org/active/publications/discussion_papers/dp.php?dpno=2233 (application/pdf)
CEPR Discussion Papers are free to download for our researchers, subscribers and members. If you fall into one of these categories but have trouble downloading our papers, please contact us at subscribers@cepr.org

Related works:
Journal Article: Finance, investment, and growth (2003) Downloads
Working Paper: Finance, Investment and Growth (1999) Downloads
Working Paper: Finance, Investment and Growth (1999) Downloads
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:cpr:ceprdp:2233

Ordering information: This working paper can be ordered from
http://www.cepr.org/ ... ers/dp.php?dpno=2233

Access Statistics for this paper

More papers in CEPR Discussion Papers from C.E.P.R. Discussion Papers Centre for Economic Policy Research, 33 Great Sutton Street, London EC1V 0DX.
Bibliographic data for series maintained by ().

 
Page updated 2025-03-19
Handle: RePEc:cpr:ceprdp:2233