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Financial shocks and TFP growth /
The paper investigates how changes in industries' funding costs affect total factor productivity (TFP) growth. Based on panel regressions using 31 U.S. and Canadian industries between 1991 and 2007, and using industries' dependence on external funding as an identification mechanism, we sho...
| Clasificación: | Libro Electrónico |
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| Autores principales: | , |
| Formato: | Electrónico eBook |
| Idioma: | Inglés |
| Publicado: |
Washington, D.C. :
International Monetary Fund, Western Hemisphere Dept.,
©2010.
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| Colección: | IMF working paper ;
WP/10/23. |
| Temas: | |
| Acceso en línea: | Texto completo |
| Sumario: | The paper investigates how changes in industries' funding costs affect total factor productivity (TFP) growth. Based on panel regressions using 31 U.S. and Canadian industries between 1991 and 2007, and using industries' dependence on external funding as an identification mechanism, we show that increases in the cost of funds have a statistically significant and economically meaningful negative impact on TFP growth. This finding cannot be explained by either increasing returns to scale or factor hoarding, as results are not sensitive to controlling for industry size and our calculations account for changes in factor utilization. Based on a stylized theoretical model, the estimates suggest that financial shocks distort the allocation of factors across firms even within an industry, reducing its TFP. The decline in productivity growth accounts for a large fraction of the negative impact of funding costs on output. |
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| Descripción Física: | 1 online resource (24 pages) : illustrations |
| Bibliografía: | Includes bibliographical references (page 24). |
| ISBN: | 9781451918717 1451918712 1452774269 9781452774268 1462382991 9781462382996 9786612845314 6612845317 1282845314 9781282845312 1451962371 9781451962376 |