Institutions, Innovations, and Growth
International Monetary Fund (IMF)
University of Hong Kong
IMF Working Paper No. 99/34
The fundamental importance of economic institutions for economic growth through their impact on technological change has been argued, reconfirmed by recent empirical studies, but not examined theoretically. This paper tries to fill that gap. In the model proposed, economic growth is affected by the efficiency and riskiness of research and development (R&D), which are endogenized through financial institutions. The theory and its results shed lights on the debate of convergence versus divergence; the East Asia miracle versus the East Asia financial crisis; and the rise and fall of centralized economies.
Number of Pages in PDF File: 11
Keywords: Financial Institutions, Technological Innovations, Economic Growth
JEL Classification: E20, G28, O31, O40working papers series
Date posted: February 12, 2006
© 2013 Social Science Electronic Publishing, Inc. All Rights Reserved.
This page was processed by apollo4 in 0.782 seconds