How to order
IMF Publications

Working Papers in full text
2014 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 1998 1997 All


Other research-related activities and publications of the IMF can be found at IMF Research

Free Email Notification

Receive emails when we post new items of interest to you.

Subscribe or Modify your profile



Firm Productivity, Innovation and Financial Development

Author/Editor: Dabla-Norris, Era | Kersting, Erasmus | Verdier, Geneviève
Authorized for Distribution: February 1, 2010
Electronic Access: Free Full Text (PDF file size is 470KB)
Use the free Adobe Acrobat Reader to view this PDF file.
 
Disclaimer: This Working Paper should not be reported as representing the views of the IMF. The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate.

Summary: How do firm-specific actions-in particular, innovation-affect firm productivity? And what is the role of the financial sector in facilitating higher productivity? Using a rich firm-level dataset, we find that innovation is crucial for firm performance as it directly and measurably increases productivity. Moreover, its effects on productivity are mediated through the financial sector; firms reap the maximum benefits from innovation in countries with well-developed financial sectors. This effect is particularly important for firms in high-tech sectors, which typically have higher external financing needs.
 
Order a print copy
Series: Working Paper No. 10/49
Subject(s): Access to capital markets | Capital | Cross country analysis | Development | Economic growth | Financial sector | Industrial production | Labor productivity | Private sector | Productivity
Author's keyword(s): innovation | labor productivity | total factor productivity | survey data | financial development
 
English  
    Published:   February 1, 2010        
            Format:   Paper
    Stock No:   WPIEA2010049   Pages:   35
    Price:   US$18.00 (Academic Rate: US$18.00 )
       
     
Please address any questions about this title to publications@imf.org.