INVESTIGADORES
SCHCLAREK CURUTCHET Alfredo
congresos y reuniones científicas
Título:
Industry Diversification, Financial Development and Productivity-Enhancing Investment
Autor/es:
ALFREDO SCHCLAREK
Lugar:
Bogota, Colombia
Reunión:
Conferencia; LACEA 2007 Annual Meeting; 2007
Institución organizadora:
Asociación de Economía de América Latina y el Caribe (LACEA)
Resumen:
This paper theoretically studies the role of the financial systemin promoting macroeconomic stability and growth. It also explainsendogenously the development of the financial system as a resultof industry (or sector) diversification. In the model, theproductive sector engages in R&D activities, and finances itsactivities through access to the financial system. While verticalinnovation spurs economic growth, horizontal innovation createsnew industry sectors, and thus enhances industry diversification.Higher industry diversification deepens the financial system byimproving its ability to finance the productive sector. Economiesthat are more diversified, and thus more financially developed,have higher growth rates and are less volatile. There is a rolefor the government to subsidize innovation, especially horizontalinnovation.
