EconPapers    
Economics at your fingertips  
 

Financial Development and Technology Diffusion

Diego Comin () and Ramana Nanda ()

No 15-036, Harvard Business School Working Papers from Harvard Business School

Abstract: We examine the extent to which financial market development impacts the diffusion of 16 major technologies, looking across 55 countries, from 1870 to 2000. We find that greater depth in financial markets leads to faster technology diffusion for more capital-intensive technologies, but only in periods closer to the invention of the technology. In fact, we find no differential effect of financial depth on the diffusion of capital-intensive technologies in the late stages of diffusion or in late adopters. Our results are consistent with a view that local financial markets play a critical role in facilitating the process of experimentation that is required for the initial commercialization of technologies. This evidence also points to an important mechanism relating financial market development to technology diffusion and economic growth.

Keywords: banking; technology diffusion; experimentation; growth. (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-fdg, nep-gro and nep-tid
Date: 2014-10
References: View references in EconPapers View complete reference list from CitEc
Citations View citations in EconPapers (5) Track citations by RSS feed

Downloads: (external link)
http://www.hbs.edu/faculty/pages/download.aspx?name=15-036.pdf (application/pdf)

Related works:
Working Paper: Financial Development and Technology Diffusion (2014) 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:hbs:wpaper:15-036

Access Statistics for this paper

More papers in Harvard Business School Working Papers from Harvard Business School Contact information at EDIRC.
Series data maintained by Soebagio Notosoehardjo ().

 
Page updated 2017-12-15
Handle: RePEc:hbs:wpaper:15-036