Financial Development and Tfp Growth: Cross-Country and Industry-Level Evidence

Abstract

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Firm Productivity, Innovation, and Financial Development

“…For example, Beck, Levine, and Loayza (2000) estimate the relation among financial development, TFP, and growth using cross-country and cross-industry data. Arizala, Cavallo, and Galindo (2009) use panel data spanning the years from 1963 to 2003 and covering 26 manufacturing industries and find evidence of a significant, positive relationship between financial development, measured by private credit over GDP, and industry-level TFP growth.…”

Financial intermediation, capital composition and income stagnation: The case of Europe

“…Research finds that total factor productivity (TFP) has an impact on country growth (OECD, 2009) and their capability to catch up (Banerjee and Jesenko, 2015;Kim and Park, 2018). It stresses that financial development is a key factor in pushing TFP (Arizala et al, 2013;Han and Shen, 2015) and that financial misallocation is a factor that affects the TFP (Dias et al, 2015). In addition, research investigates the impact of the financial crisis on TFP (Chouard et al, 2014;Ollivaud and Turner, 2015;Sandliers and Wright, 2014).…”

Financial Deepening and Economic Growth in Indonesia

“…In the context of financial liberalization that many developing countries have taken steps to increase financial freedom through the creation of their financial systems more as a tool for economic growth (Klein and Olivei, 2005). In the financial sector, financial intermediaries, such as banks, insurance companies, and capital markets mobilize funds from surplus units to those who do not have funds (Arizala, Cavallo and Galindo, 2009). Financial markets play an important role in terms of sustaining economic growth, they support by channeling capital into various investment products giving investors an opportunity to stabilize the accumulation of personal wealth and add to the overall stability of the economy by diversifying sources of funding.…”