Institutions, innovations, and Growth

March 1, 1999

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Format: Chicago

Chenggang Xu, and Haizhou Huang. Institutions, innovations, and Growth, (USA: International Monetary Fund, 1999) accessed November 21, 2024

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

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.

Subject: Banking, Project loans, Self-employment

Keywords: Financial institution, WP

Publication Details

Pages:

11
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 1999/034
Stock No:

WPIEA0341999
ISBN:

9781451845242
ISSN:

1018-5941

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