Financial Development and Dynamic Investment Behavior : Evidence from Panel Vector Autoregression | |
Love, Inessa ; Zicchino, Lea | |
World Bank, Washington, DC | |
关键词: ACCOUNTING; ADVERSE SELECTION; ASYMMETRIC INFORMATION; AUTOREGRESSION; BALANCE SHEETS; | |
DOI : 10.1596/1813-9450-2913 RP-ID : WPS2913 |
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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 】
The authors apply vector autoregressionto firm-level panel data from 36 countries to study thedynamic relationship between firms' financialconditions and investment. They argue that by usingorthogonalized impulse-response functions they are able toseparate the "fundamental factors" (such asmarginal profitability of investment) from the"financial factors" (such as availability ofinternal finance) that influence the level of investment.The authors find that the impact of the financial factors oninvestment, which they interpret as evidence of financingconstraints, is significantly larger in countries with lessdeveloped financial systems. The finding emphasizes the roleof financial development in improving capital allocation and growth.
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