Abstract

https://ssrn.com/abstract=2403364
 


 



Financial Liberalization and Innovation


Fariborz Moshirian


Institute of Global Finance, UNSW Business School

Xuan Tian


Tsinghua University - PBC School of Finance

Bohui Zhang


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

Wenrui Zhang


The Chinese University of Hong Kong (CUHK) - Department of Finance

November 9, 2015

Kelley School of Business Research Paper No. 2014-08

Abstract:     
We investigate the impact of financial liberalization on technological innovation. Using a fixed effects identification strategy and a sample of 51 developed and emerging economies between 1980 and 2008, we find that external equity finance dependent industries exhibit a disproportionately higher level of innovation output after financial liberalization. The relaxation of financial constraints, the utilization of human capital, and the transmission of foreign technology are three plausible underlying economic channels through which financial liberalization promotes innovation. Our paper provides new insights into the real effects of financial liberalization on the economy and growth.

Number of Pages in PDF File: 56

Keywords: financial liberalization; innovation; financial constraints; human capital; technology transmission

JEL Classification: G15, O30, F63


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Date posted: March 2, 2014 ; Last revised: November 9, 2015

Suggested Citation

Moshirian, Fariborz and Tian, Xuan and Zhang, Bohui and Zhang, Wenrui, Financial Liberalization and Innovation (November 9, 2015). Kelley School of Business Research Paper No. 2014-08. Available at SSRN: https://ssrn.com/abstract=2403364 or http://dx.doi.org/10.2139/ssrn.2403364

Contact Information

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

Xuan Tian (Contact Author)
Tsinghua University - PBC School of Finance ( email )
No. 43, Chengfu Road
Haidian District
Beijing 100083
China
+86-10-62794103 (Phone)
HOME PAGE: http://xuantian.info/
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

Wenrui Zhang
The Chinese University of Hong Kong (CUHK) - Department of Finance ( email )
Shatin, N.T.
Hong Kong
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