Financial development and innovation: Cross-country evidence

• 成果类型: Article
• 署名作者: Hsu, Po-Hsuan; Tian, Xuan; Xu, Yan
• 署名单位: University of Hong Kong; Indiana University System; Indiana University Bloomington; IU Kelley School of Business
• 刊物名称: JOURNAL OF FINANCIAL ECONOMICS
• ISSN/ISSBN: 0304-405X
• DOI: 10.1016/j.jfineco.2013.12.002
• 发表日期: 2014
• 页码: 116-135
• 关键词: financial development; INNOVATION; External finance dependence; High-tech intensiveness

摘要

We examine how financial market development affects technological innovation. Using a large data set that includes 32 developed and emerging countries and a fixed effects identification strategy, we identify economic mechanisms through which the development of equity markets and credit markets affects technological innovation. We show that industries that are more dependent on external finance and that are more high-tech intensive exhibit a disproportionally higher innovation level in countries with better developed equity markets. However, the development of credit markets appears to discourage innovation in industries with these characteristics. Our paper provides new insights into the real effects of financial market development on the economy. Published by Elsevier B.V.