Abstract

http://ssrn.com/abstract=2403364
 


 



Financial Liberalization and Innovation


Fariborz Moshirian


University of New South Wales (UNSW) - Institute of Global Finance, Australian School of Business

Xuan Tian


Indiana University - Kelley School of Business - Department of Finance

Zhengyuan Wang


University of New South Wales (UNSW) - School of Banking and Finance

Bohui Zhang


University of New South Wales (UNSW) - School of Banking and Finance; Financial Research Network (FIRN)

June 1, 2014


Abstract:     
We investigate the impact of financial liberalization on technological innovation. Using a fixed effects identification strategy and a sample of 37 developed and emerging economies over the period between 1980 and 2009, we identify economic mechanisms through which financial liberalization affects innovation. Industries that are more dependent on external finance, have greater growth opportunities, are younger, have higher operational risk, and are more high-tech intensive have a disproportionately higher level of innovation output following financial market liberalization. The positive effects of financial liberalization on innovation are substantiated in countries with low implicit barriers to international investments. We provide new insights into the real effects of financial liberalization on the economy and growth.

Number of Pages in PDF File: 50

Keywords: innovation, financial liberalization, economic growth

JEL Classification: G15, O30, F63

working papers series


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Date posted: March 2, 2014 ; Last revised: June 24, 2014

Suggested Citation

Moshirian, Fariborz and Tian, Xuan and Wang, Zhengyuan and Zhang, Bohui, Financial Liberalization and Innovation (June 1, 2014). Available at SSRN: http://ssrn.com/abstract=2403364 or http://dx.doi.org/10.2139/ssrn.2403364

Contact Information

Fariborz Moshirian
University of New South Wales (UNSW) - Institute of Global Finance, Australian School of Business ( email )
Sydney, NSW 2052
Australia
+61 2 93855859 (Phone)
+61 2 94877519 (Fax)

Xuan Tian (Contact Author)
Indiana University - Kelley School of Business - Department of Finance ( email )
1309 E. Tenth Street
Bloomington, IN 47405
United States
812-8553420 (Phone)
824-8555875 (Fax)
HOME PAGE: http://kelley.iu.edu/tianx

Zhengyuan Wang
University of New South Wales (UNSW) - School of Banking and Finance ( email )
Sydney, NSW 2052
Australia
Bohui Zhang
University of New South Wales (UNSW) - School of Banking and Finance ( email )
Australian School of Business
Sydney NSW, 2052
Australia
61293855834 (Phone)
61293856347 (Fax)
HOME PAGE: http://www.banking.unsw.edu.au/nps/servlet/portalservice?GI_ID=System.LoggedOutInheritableArea&maxWn

Financial Research Network (FIRN)
C/- University of Queensland Business School
St Lucia, 4071 Brisbane
Queensland
Australia
HOME PAGE: http://www.firn.org.au

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