Finance and Development: A Tale of Two Sectors

• 成果类型: Article
• 署名作者: Buera, Francisco J.; Kaboski, Joseph P.; Shin, Yongseok
• 署名单位: University of California System; University of California Los Angeles; University of Notre Dame; Washington University (WUSTL); Federal Reserve System - USA; Federal Reserve Bank - St. Louis
• 刊物名称: AMERICAN ECONOMIC REVIEW
• ISSN/ISSBN: 0002-8282
• DOI: 10.1257/aer.101.5.1964
• 发表日期: 2011
• 页码: 1964-2002
• 关键词: aggregate productivity; size; intermediation; countries; GROWTH; TFP

摘要

We develop a quantitative framework to explain the relationship between aggregate/ sector-level total factor productivity (TFP) and financial development across countries. Financial frictions distort the allocation of capital and entrepreneurial talent across production units, adversely affecting measured productivity. In our model, sectors with larger scales of operation (e. g., manufacturing) have more financing needs, and are hence disproportionately vulnerable to financial frictions. Our quantitative analysis shows that financial frictions account for a substantial part of the observed cross-country differences in output per worker, aggregate TFP, sector-level relative productivity, and capital-to-output ratios. (JEL E23, E44, O41, O47)