Adjustment to target capital, finance and growth
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- dc.contributor.author Ciccone, Antonioca
- dc.contributor.author Papaioannou, Eliasca
- dc.contributor.other Universitat Pompeu Fabra. Departament d'Economia i Empresa
- dc.date.accessioned 2017-07-26T10:50:44Z
- dc.date.available 2017-07-26T10:50:44Z
- dc.date.issued 2006-11-01
- dc.date.modified 2017-07-23T02:10:44Z
- dc.description.abstract Does financial development result in capital being reallocated more rapidly to industries where it is most productive? We argue that if this was the case, financially developed countries should see faster growth in industries with investment opportunities due to global demand and productivity shifts. Testing this cross-industry cross-country growth implication requires proxies for (latent) global industry investment opportunities. We show that tests relying only on data from specific (benchmark) countries may yield spurious evidence for or against the hypothesis. We therefore develop an alternative approach that combines benchmark-country proxies with a proxy that does not reflect opportunities specific to a country or level of financial development. Our empirical results yield clear support for the capital reallocation hypothesis.
- dc.format.mimetype application/pdfca
- dc.identifier https://econ-papers.upf.edu/ca/paper.php?id=982
- dc.identifier.uri http://hdl.handle.net/10230/293
- dc.language.iso eng
- dc.relation.ispartofseries Economics and Business Working Papers Series; 982
- dc.rights L'accés als continguts d'aquest document queda condicionat a l'acceptació de les condicions d'ús establertes per la següent llicència Creative Commons
- dc.rights.accessRights info:eu-repo/semantics/openAccess
- dc.rights.uri http://creativecommons.org/licenses/by-nc-nd/3.0/es/
- dc.subject.keyword financial development
- dc.subject.keyword sector analysis
- dc.subject.keyword growth
- dc.subject.keyword measurement error
- dc.subject.keyword investment opportunities
- dc.subject.keyword Macroeconomics and International Economics
- dc.title Adjustment to target capital, finance and growthca
- dc.type info:eu-repo/semantics/workingPaper