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What explains cross-country differences in industry growth rates: trade, development and finance

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What explains cross-country differences in industry growth rates : trade, development and finance. / Chang, Yuk Ying; Dasgupta, Sudipto.

In: International Review of Finance, Vol. 3, No. 2, 06.2002, p. 105-129.

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Chang, Yuk Ying ; Dasgupta, Sudipto. / What explains cross-country differences in industry growth rates : trade, development and finance. In: International Review of Finance. 2002 ; Vol. 3, No. 2. pp. 105-129.

Bibtex

@article{8114aa64c83c468b9c7943d0359263f2,
title = "What explains cross-country differences in industry growth rates: trade, development and finance",
abstract = "We test theories that examine how economic and financial development affect cross-country industry growth patterns. Finance theory suggests that financial development affects growth by lowering the cost of external finance. This has the implication that industries in more finance-hungry sectors will grow faster in countries where financial markets are more developed. In addition, if financing constraints are lessened when stock market performance is high, firms in sectors more dependent on external finance should grow more rapidly following periods of good stock market performance. Trade and development theories, on the other hand, imply that a country's product-mix and the pattern of industrial growth reflect which stage of development it is in and its factor endowments. Thus, one implication of trade/development theories is that countries that are close to each other in terms of GDP per capita should have similar patterns of industrial growth. Our tests find support for each of these theories.",
author = "Chang, {Yuk Ying} and Sudipto Dasgupta",
year = "2002",
month = jun
doi = "10.1111/1468-2443.00035",
language = "English",
volume = "3",
pages = "105--129",
journal = "International Review of Finance",
issn = "1369-412X",
publisher = "John Wiley and Sons Ltd",
number = "2",

}

RIS

TY - JOUR

T1 - What explains cross-country differences in industry growth rates

T2 - trade, development and finance

AU - Chang, Yuk Ying

AU - Dasgupta, Sudipto

PY - 2002/6

Y1 - 2002/6

N2 - We test theories that examine how economic and financial development affect cross-country industry growth patterns. Finance theory suggests that financial development affects growth by lowering the cost of external finance. This has the implication that industries in more finance-hungry sectors will grow faster in countries where financial markets are more developed. In addition, if financing constraints are lessened when stock market performance is high, firms in sectors more dependent on external finance should grow more rapidly following periods of good stock market performance. Trade and development theories, on the other hand, imply that a country's product-mix and the pattern of industrial growth reflect which stage of development it is in and its factor endowments. Thus, one implication of trade/development theories is that countries that are close to each other in terms of GDP per capita should have similar patterns of industrial growth. Our tests find support for each of these theories.

AB - We test theories that examine how economic and financial development affect cross-country industry growth patterns. Finance theory suggests that financial development affects growth by lowering the cost of external finance. This has the implication that industries in more finance-hungry sectors will grow faster in countries where financial markets are more developed. In addition, if financing constraints are lessened when stock market performance is high, firms in sectors more dependent on external finance should grow more rapidly following periods of good stock market performance. Trade and development theories, on the other hand, imply that a country's product-mix and the pattern of industrial growth reflect which stage of development it is in and its factor endowments. Thus, one implication of trade/development theories is that countries that are close to each other in terms of GDP per capita should have similar patterns of industrial growth. Our tests find support for each of these theories.

U2 - 10.1111/1468-2443.00035

DO - 10.1111/1468-2443.00035

M3 - Journal article

VL - 3

SP - 105

EP - 129

JO - International Review of Finance

JF - International Review of Finance

SN - 1369-412X

IS - 2

ER -