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Article: Financial development and innovation: Cross-country evidence
Title | Financial development and innovation: Cross-country evidence |
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Authors | |
Keywords | Financial development Innovation External finance dependence High-tech intensiveness |
Issue Date | 2014 |
Publisher | Elsevier BV. The Journal's web site is located at http://www.elsevier.com/locate/jfec |
Citation | Journal of Financial Economics, 2014, v. 112 n. 1, p. 116-135 How to Cite? |
Abstract | 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. |
Persistent Identifier | http://hdl.handle.net/10722/201019 |
ISSN | 2023 Impact Factor: 10.4 2023 SCImago Journal Rankings: 13.655 |
SSRN | |
ISI Accession Number ID |
DC Field | Value | Language |
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dc.contributor.author | Hsu, P | - |
dc.contributor.author | Tian, X | - |
dc.contributor.author | Xu, Y | - |
dc.date.accessioned | 2014-08-21T07:09:56Z | - |
dc.date.available | 2014-08-21T07:09:56Z | - |
dc.date.issued | 2014 | - |
dc.identifier.citation | Journal of Financial Economics, 2014, v. 112 n. 1, p. 116-135 | - |
dc.identifier.issn | 0304-405X | - |
dc.identifier.uri | http://hdl.handle.net/10722/201019 | - |
dc.description.abstract | 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. | - |
dc.language | eng | - |
dc.publisher | Elsevier BV. The Journal's web site is located at http://www.elsevier.com/locate/jfec | - |
dc.relation.ispartof | Journal of Financial Economics | - |
dc.rights | NOTICE: this is the author’s version of a work that was accepted for publication in Journal of Financial Economics. Changes resulting from the publishing process, such as peer review, editing, corrections, structural formatting, and other quality control mechanisms may not be reflected in this document. Changes may have been made to this work since it was submitted for publication. A definitive version was subsequently published in Journal of Financial Economics, vol 112, issue 1, 2014. DOI: 10.1016/j.jfineco.2013.12.002 | - |
dc.rights | © 2013. This manuscript version is made available under the CC-BY-NC-ND 4.0 license http://creativecommons.org/licenses/by-nc-nd/4.0/ | - |
dc.subject | Financial development | - |
dc.subject | Innovation | - |
dc.subject | External finance dependence | - |
dc.subject | High-tech intensiveness | - |
dc.title | Financial development and innovation: Cross-country evidence | - |
dc.type | Article | - |
dc.identifier.email | Hsu, P: paulhsu@hku.hk | - |
dc.identifier.email | Xu, Y: yanxuj@hku.hk | - |
dc.identifier.authority | Hsu, P=rp01553 | - |
dc.identifier.authority | Xu, Y=rp01799 | - |
dc.description.nature | postprint | - |
dc.identifier.doi | 10.1016/j.jfineco.2013.12.002 | - |
dc.identifier.scopus | eid_2-s2.0-84894625751 | - |
dc.identifier.hkuros | 234307 | - |
dc.identifier.volume | 112 | - |
dc.identifier.issue | 1 | - |
dc.identifier.spage | 116 | - |
dc.identifier.epage | 135 | - |
dc.identifier.isi | WOS:000333232100006 | - |
dc.publisher.place | Netherlands | - |
dc.identifier.ssrn | 1745682 | - |
dc.identifier.issnl | 0304-405X | - |