Abstract

This article examines the role of financial markets as a catalyst for international technology diffusion using a panel data set on 72 countries over the period 1981 to 2005. The results suggest that countries with better developed financial markets benefit more from foreign R&D stocks to promote domestic productivity growth. This finding is robust to the inclusion of proxies for human capital and domestic R&D stocks as alternative measures of absorptive capacity.

Talk to us

Join us for a 30 min session where you can share your feedback and ask us any queries you have

Schedule a call

Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.