Institutions, innovations, and Growth

Author/Editor:

Chenggang Xu ; Haizhou Huang

Publication Date:

March 1, 1999

Electronic Access:

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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:

The fundamental importance of economic institutions for economic growth through their impact on technological change has been argued, reconfirmed by recent empirical studies, but not examined theoretically. This paper tries to fill that gap. In the model proposed, economic growth is affected by the efficiency and riskiness of research and development (R&D), which are endogenized through financial institutions. The theory and its results shed lights on the debate of convergence versus divergence; the “East Asia miracle” versus the East Asia financial crisis; and the rise and fall of centralized economies.

Series:

Working Paper No. 99/34

English

Publication Date:

March 1, 1999

ISBN/ISSN:

9781451845242/1018-5941

Stock No:

WPIEA0341999

Price:

$15.00 (Academic Rate:$15.00)

Format:

Paper

Pages:

11

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