Stock markets, credit markets, and technology-led growth Brown, James Martinsson, Gustav Petersen, Bruce
dc.contributor.department Finance 2018-02-19T02:28:10.000 2020-06-30T03:58:03Z 2020-06-30T03:58:03Z Sun Jan 01 00:00:00 UTC 2017 2018-10-01 2017-10-01
dc.description.abstract <p>The high-tech sector accounts for the majority of corporate innovation in modern economies. In a sample of 38 countries, we document a strong positive relation between the initial size of the country's high-tech sector and subsequent rates of GDP and total factor productivity growth. We also find a strong positive connection between a country's equity (but not credit) market development and the size of its high-tech sector. Our main difference-in-differences estimates show that better developed stock markets support faster growth of innovative-intensive, high-tech industries. The main channels for this effect are higher rates of productivity and faster growth in the number of new high-tech firms. Credit market development fosters growth in industries that rely on external finance for physical capital accumulation but is unimportant for growth in innovation-intensive industries. These findings show that stock markets and credit markets play important but distinct roles in supporting economic growth. Stock markets are uniquely suited for financing technology-led growth, a particularly important concern for advanced economies.</p>
dc.description.comments <p>This is an accepted manuscript of an article from <em>Journal of Financial Intermediation,</em> 32 (2017); 45-59. DOI:<a href="" target="_blank"> 10.1016/j.jfi.2016.07.002</a>. Posted with permission.</p> <h2> </h2>
dc.format.mimetype application/pdf
dc.identifier archive/
dc.identifier.articleid 1018
dc.identifier.contextkey 11050797
dc.identifier.s3bucket isulib-bepress-aws-west
dc.identifier.submissionpath finance_pubs/9
dc.language.iso en
dc.source.bitstream archive/|||Sat Jan 15 02:24:48 UTC 2022
dc.source.uri 10.1016/j.jfi.2016.07.002
dc.subject.disciplines Corporate Finance
dc.subject.disciplines Finance and Financial Management
dc.subject.disciplines International Business
dc.subject.disciplines International Economics
dc.subject.keywords Finance and growth
dc.subject.keywords Innovation
dc.subject.keywords Technological progress
dc.subject.keywords Stock market development
dc.subject.keywords Financial system architecture
dc.title Stock markets, credit markets, and technology-led growth
dc.type article
dc.type.genre article
dspace.entity.type Publication
relation.isAuthorOfPublication ac67180a-d497-41fc-beaf-75e4f0244de3
relation.isOrgUnitOfPublication e2432527-158f-465f-8301-f4ab4c262f9b
Original bundle
Now showing 1 - 1 of 1
No Thumbnail Available
770.44 KB
Adobe Portable Document Format