Financial Development and Financing Constraints: International Evidence from the Structural Investment Model
نویسنده
چکیده
This paper provides a micro-level evidence that ...nancial development impacts growth by reducing ...nancing constraints that would otherwise restrict e¢cient ...rm investment. I estimate a structural model based on the Euler equation for investment using ...rm-level data from 40 countries. I ...nd a strong negative relationship between the extent of ...nancial market development, and the sensitivity of investment to availability of internal funds (a proxy for ...nancing constraints). I also consider size e¤ect, business cycles and legal environment as plausible alternative explanations and ...nd the results to be robust in all cases. JEL codes: G20, G31, O12, O16
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تاریخ انتشار 2001