Access to Finance, Product Innovation and Middle-Income Traps | |
Agé ; nor, Pierre-Richard ; Canuto, Otaviano | |
World Bank, Washington, DC | |
关键词: ACCESS TO EXTERNAL FINANCE; ACCESS TO FINANCE; ACCOUNTING; ADVERSE EFFECT; AGENCY PROBLEMS; | |
DOI : 10.1596/1813-9450-6767 RP-ID : WPS6767 |
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学科分类:社会科学、人文和艺术(综合) | |
来源: World Bank Open Knowledge Repository | |
【 摘 要 】
This paper studies interactions betweenaccess to finance, product innovation, and labor supply in atwo-period overlapping generations model with an endogenousskill distribution and credit market frictions. In the modellack of access to finance (induced by high monitoring costs)has an adverse effect on innovation activity not onlydirectly but also indirectly, because too few individualsmay choose to invest in skills. If monitoring costs fallwith the number of successful projects, multiple equilibriamay emerge, one of which, a middle-income trap,characterized by low wages in the design sector, a low shareof the labor force engaged in innovation activity, and lowgrowth. A sufficiently ambitious policy aimed at alleviatingconstraints on access to finance by innovators may allow acountry to move away from such a trap by promoting theproduction of ideas and improving incentives to invest in skills.
【 预 览 】
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WPS6767.pdf | 939KB | download |