Does financial development promotes innovation in developing economies? An Empirical Analysis
Using firm-level data from 2006 to 2013 for a set of developing countries, we examine the effects of financial development on innovation. Financial development boosts innovation by improving resource allocation and investment toward strategic sectors as well as facilitating technology to promote gro...
- Autores:
-
Aristizabal, María
Botero, Maria
Canavire, Gustavo
- Tipo de recurso:
- Fecha de publicación:
- 2015
- Institución:
- Universidad EAFIT
- Repositorio:
- Repositorio EAFIT
- Idioma:
- eng
- OAI Identifier:
- oai:repository.eafit.edu.co:10784/5096
- Acceso en línea:
- http://hdl.handle.net/10784/5096
- Palabra clave:
- Financial Development
Innovation
Economic Growth
Developing Countries
- Rights
- License
- Acceso abierto
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Medellín de: Lat: 06 15 00 N degrees minutes Lat: 6.2500 decimal degrees Long: 075 36 00 W degrees minutes Long: -75.6000 decimal degrees2015-03-14T22:29:57Z2015-01-012015-03-14T22:29:57Zhttp://hdl.handle.net/10784/5096G00G23O31O29Using firm-level data from 2006 to 2013 for a set of developing countries, we examine the effects of financial development on innovation. Financial development boosts innovation by improving resource allocation and investment toward strategic sectors as well as facilitating technology to promote growth. Using binary response models as well as instrumental variable techniques to correct for endogeneity, we find robust but puzzling results. Contrary to most existing literature, financial development has a negative effect on the probability of a firm to innovate. The effect is conditional on firm size, and only larger firms are the ones that benefit from financial development. These results are robust to different measures of financial development. We argue that this is a result of the design of the financial system in regards to the lack of capital and the institutional system. Consequently, developing countries should first generate appropiate insitutional conditions if they want financial development to spur growth through innovation.engUniversidad EAFITEscuela de Economía y FinanzasDoes financial development promotes innovation in developing economies? An Empirical AnalysisworkingPaperinfo:eu-repo/semantics/workingPaperDocumento de trabajo de investigacióndrafthttp://purl.org/coar/version/c_b1a7d7d4d402bccehttp://purl.org/coar/resource_type/c_8042Acceso abiertohttp://purl.org/coar/access_right/c_abf2Financial DevelopmentInnovationEconomic GrowthDeveloping Countriesmarist19@eafit.edu.combotero7@eafit.edu.cogcanavir@eafit.edu.coAristizabal, MaríaBotero, MariaCanavire, GustavoLICENSElicense.txtlicense.txttext/plain; charset=utf-82556https://repository.eafit.edu.co/bitstreams/d8c9984e-54dc-455b-bdb1-0d291df262b9/download76025f86b095439b7ac65b367055d40cMD51ORIGINAL2015_06_Gustavo_Canavire.pdf2015_06_Gustavo_Canavire.pdfDocumento de trabajo de investigaciónapplication/pdf1273572https://repository.eafit.edu.co/bitstreams/e1eaafa5-deae-4480-ace7-5f51255c6c13/download4d0a5c4641768053a2b46db0f75a9825MD5210784/5096oai:repository.eafit.edu.co:10784/50962024-03-05 14:06:04.266open.accesshttps://repository.eafit.edu.coRepositorio Institucional Universidad EAFITrepositorio@eafit.edu.co |
dc.title.eng.fl_str_mv |
Does financial development promotes innovation in developing economies? An Empirical Analysis |
title |
Does financial development promotes innovation in developing economies? An Empirical Analysis |
spellingShingle |
Does financial development promotes innovation in developing economies? An Empirical Analysis Financial Development Innovation Economic Growth Developing Countries |
title_short |
Does financial development promotes innovation in developing economies? An Empirical Analysis |
title_full |
Does financial development promotes innovation in developing economies? An Empirical Analysis |
title_fullStr |
Does financial development promotes innovation in developing economies? An Empirical Analysis |
title_full_unstemmed |
Does financial development promotes innovation in developing economies? An Empirical Analysis |
title_sort |
Does financial development promotes innovation in developing economies? An Empirical Analysis |
dc.creator.fl_str_mv |
Aristizabal, María Botero, Maria Canavire, Gustavo |
dc.contributor.eafitauthor.none.fl_str_mv |
marist19@eafit.edu.co mbotero7@eafit.edu.co gcanavir@eafit.edu.co |
dc.contributor.author.none.fl_str_mv |
Aristizabal, María Botero, Maria Canavire, Gustavo |
dc.subject.keyword.eng.fl_str_mv |
Financial Development Innovation Economic Growth Developing Countries |
topic |
Financial Development Innovation Economic Growth Developing Countries |
description |
Using firm-level data from 2006 to 2013 for a set of developing countries, we examine the effects of financial development on innovation. Financial development boosts innovation by improving resource allocation and investment toward strategic sectors as well as facilitating technology to promote growth. Using binary response models as well as instrumental variable techniques to correct for endogeneity, we find robust but puzzling results. Contrary to most existing literature, financial development has a negative effect on the probability of a firm to innovate. The effect is conditional on firm size, and only larger firms are the ones that benefit from financial development. These results are robust to different measures of financial development. We argue that this is a result of the design of the financial system in regards to the lack of capital and the institutional system. Consequently, developing countries should first generate appropiate insitutional conditions if they want financial development to spur growth through innovation. |
publishDate |
2015 |
dc.date.available.none.fl_str_mv |
2015-03-14T22:29:57Z |
dc.date.issued.none.fl_str_mv |
2015-01-01 |
dc.date.accessioned.none.fl_str_mv |
2015-03-14T22:29:57Z |
dc.type.eng.fl_str_mv |
workingPaper info:eu-repo/semantics/workingPaper |
dc.type.coarversion.fl_str_mv |
http://purl.org/coar/version/c_b1a7d7d4d402bcce |
dc.type.coar.fl_str_mv |
http://purl.org/coar/resource_type/c_8042 |
dc.type.local.spa.fl_str_mv |
Documento de trabajo de investigación |
dc.type.hasVersion.eng.fl_str_mv |
draft |
dc.identifier.uri.none.fl_str_mv |
http://hdl.handle.net/10784/5096 |
dc.identifier.jel.none.fl_str_mv |
G00 G23 O31 O29 |
url |
http://hdl.handle.net/10784/5096 |
identifier_str_mv |
G00 G23 O31 O29 |
dc.language.iso.eng.fl_str_mv |
eng |
language |
eng |
dc.rights.coar.fl_str_mv |
http://purl.org/coar/access_right/c_abf2 |
dc.rights.local.spa.fl_str_mv |
Acceso abierto |
rights_invalid_str_mv |
Acceso abierto http://purl.org/coar/access_right/c_abf2 |
dc.coverage.spatial.eng.fl_str_mv |
Medellín de: Lat: 06 15 00 N degrees minutes Lat: 6.2500 decimal degrees Long: 075 36 00 W degrees minutes Long: -75.6000 decimal degrees |
dc.publisher.spa.fl_str_mv |
Universidad EAFIT |
dc.publisher.department.spa.fl_str_mv |
Escuela de Economía y Finanzas |
institution |
Universidad EAFIT |
bitstream.url.fl_str_mv |
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repository.name.fl_str_mv |
Repositorio Institucional Universidad EAFIT |
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repositorio@eafit.edu.co |
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1814110179676913664 |