Arbeitspapier
Banking crises and investments in innovation
This paper proposes a new channel to explain the medium- to long-term effects of banking crises on the real economy. It embeds a banking sector prone to runs in a stylized growth model to show that episodes of bank distress affect not only the volume, but also the com- position of firm investment, by disproportionally decreasing investments in innovation. This hypothesis is confirmed empirically employing industry-level data on R&D spending around 13 recent banking crises episodes. Using difference-in-difference identification strategies, I show that industries that depend more on external finance, in more bank-based economies, invest disproportionally less in R&D following systemic banking crises. These industries also have a lower share of R&D spending in total investment, suggesting a shift in the composition of investment that is specific to recessions following banking crises and not other business cycle recessions.
- Sprache
-
Englisch
- Erschienen in
-
Series: UCD Centre for Economic Research Working Paper Series ; No. WP17/27
- Klassifikation
-
Wirtschaft
Financial Crises
Banks; Depository Institutions; Micro Finance Institutions; Mortgages
Investment; Capital; Intangible Capital; Capacity
- Thema
-
banking crises
R&D investment
financial dependence
global games
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Peia, Oana
- Ereignis
-
Veröffentlichung
- (wer)
-
University College Dublin, UCD School of Economics
- (wo)
-
Dublin
- (wann)
-
2017
- Handle
- Letzte Aktualisierung
-
11.03.3025, 16:45 MEZ
Datenpartner
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
Objekttyp
- Arbeitspapier
Beteiligte
- Peia, Oana
- University College Dublin, UCD School of Economics
Entstanden
- 2017
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