Financial constraints and innovation: Why poor countries don't catchup
Yuriy Gorodnichenko and
Monika Schnitzer ()
Discussion Paper Series of SFB/TR 15 Governance and the Efficiency of Economic Systems from Free University of Berlin, Humboldt University of Berlin, University of Bonn, University of Mannheim, University of Munich
Abstract:
We examine micro-level channels of how financial development can affect macroeconomic outcomes like the level of income and export intensity. We investigate theoretically and empirically how financial constraints affect a firm's innovation and export activities, using unique firm survey data which provides direct measures for innovations and firm-specific financial constraints. We find that financial constraints restraint heability of domestically owned firms to innovate and export and hence to catch up to the technological frontiers. This negative effect is amplified as financial constraints force export and innovation activities to become substitutes although they are generally natural complements.
Keywords: innovation; productivity; financial constraint; export; technology frontier; BEEPS (search for similar items in EconPapers)
JEL-codes: F1 G3 O16 O3 (search for similar items in EconPapers)
Date: 2010-06
New Economics Papers: this item is included in nep-eff, nep-ino and nep-mic
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (34)
Downloads: (external link)
https://epub.ub.uni-muenchen.de/13213/1/341.pdf (application/pdf)
Related works:
Journal Article: FINANCIAL CONSTRAINTS AND INNOVATION: WHY POOR COUNTRIES DON'T CATCH UP (2013) 
Working Paper: Financial constraints and innovation: Why poor countries don't catch up (2013)
Working Paper: Financial constraints and innovation: Why poor countries don't catch up (2010) 
Working Paper: Financial Constraints and Innovation: Why Poor Countries Don't Catch Up (2010) 
Working Paper: Financial constraints and innovation: Why poor countries don't catch up (2010) 
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:trf:wpaper:341
Access Statistics for this paper
More papers in Discussion Paper Series of SFB/TR 15 Governance and the Efficiency of Economic Systems from Free University of Berlin, Humboldt University of Berlin, University of Bonn, University of Mannheim, University of Munich Geschwister-Scholl-Platz 1, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Tamilla Benkelberg ().