Financial constraints and innovation: Why poor countries don't catch up / Yuriy Gorodnichenko, Monika Schnitzer.

Format:

Book

Author/Creator:

Gorodnichenko, Yuriy.

Contributor:

National Bureau of Economic Research.

Schnitzer, Monika.

Series:

Working Paper Series (National Bureau of Economic Research) no. w15792.

NBER working paper series no. w15792

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Other Title:

Financial constraints and innovation

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 2010.

Summary:

This paper examines micro-level channels of how financial development can affect macroeconomic outcomes like the level of income and export intensity. We investigate theoretically and empirically how financial constraints affect a firm's innovation and export activities, using unique firm survey data which provides direct measures for innovations and firm-specific financial constraints. We find that financial constraints restrain the ability of domestically owned firms to innovate and export and hence to catch up to the technological frontiers. This negative effect is amplified as financial constraints force export and innovation activities to become substitutes although they are generally natural complements.

Notes:

Print version record

March 2010.