CAPITAL MISALLOCATION AND FINANCIAL DEVELOPMENT: A SECTOR-LEVEL ANALYSIS
Christian Upper and
Daniela Marconi ()
Annual Conference 2017 (Vienna): Alternative Structures for Money and Banking from Verein für Socialpolitik / German Economic Association
We investigate the relationship between capital misallocation and financial development in six countries at different levels of development. We find that more developed financial systems perform better at allocating capital investment. If financial development is low, faster capital accumulation results in a worsening of allocative efficiency. This effect reverses for higher levels of financial development. Sectors with high R&D expenditures or high capital investment benefit most.
JEL-codes: O47 O16 (search for similar items in EconPapers)
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Working Paper: Capital Misallocation and Financial Development: A Sector-Level Analysis (2017)
Working Paper: Capital misallocation and financial development: A sector-level analysis (2017)
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:vfsc17:168205
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