Finance and productivity growth: Firm-level evidence

被引:55
作者
Levine, Oliver [1 ]
Warusawitharana, Missaka [2 ]
机构
[1] Univ Wisconsin Madison, 975 Univ Ave, Madison, WI 53706 USA
[2] Fed Reserve Syst, Board Governors, Div Supervis & Regulat, Mail Stop 8327,20th St & Constitut Ave NW, Washington, DC 20551 USA
关键词
Financial crises; Financial frictions; Innovation; Total factor productivity (TFP);
D O I
10.1016/j.jmoneco.2019.11.009
中图分类号
F8 [财政、金融];
学科分类号
0202 ;
摘要
The effect of financing frictions on firm productivity growth is not well understood. Using a model we show that a rise in financial frictions leads to increased sensitivity of productivity growth to the use of external finance. We test this prediction using a large dataset of mostly private European firms and find strong evidence supporting the prediction. Our findings demonstrate an important link between financial markets and the real economy, and help to explain why economic activity remains persistently depressed following financial crises. (C) 2019 Elsevier B.V. All rights reserved.
引用
收藏
页码:91 / 107
页数:17
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