Financial development and TFP growth: cross-country and industry-level evidence

Abstract

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Firm Productivity, Innovation, and Financial Development

“…For example, estimate the relation among financial development, TFP, and growth using cross‐country and cross‐industry data. 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.…”

The politics of financial development: The role of interest groups and government capabilities

“…Also, Buera and Shin (2008), Buera, Kaboski and Shin (2008), Jeong and Townsend (2007), Aghion et al (2005), and Greenwald, Kohn and Stiglitz (1990), are examples of models describing how financial restrictions lead to an inefficient allocation of resources either across sectors or across activities with differential productivities. See Arizala, Cavallo and Galindo (2009) for empirical evidence on the link between credit and industry-level TFP growth.…”

Shocks, financial dependence and efficiency: Evidence from U.S. and Canadian industries

“…In addition, we do not focus on crises periods but instead analyze the response of TFP to regular movements in the cost of finance. This is a distinctive feature of the present study compared with that of Arizala, Cavallo and Galindo (; ACG), who rely on a similar technique to evaluate the impact of financial development on TFP growth in a panel of industries across different countries. They also use RZ's measure, but their focus is on the low frequency movements in TFP resulting from alternative degrees of financial development.…”