Shocks, financial dependence and efficiency: Evidence from U.S. and Canadian industries
研究了融资成本变化如何影响产业全要素生产率增长，发现成本上升会降低生产率，且影响程度取决于产业对外部融资的依赖程度。
Abstract This paper investigates how changes in industries’ funding costs affect total factor productivity (TFP) growth. Based on panel regressions using data for U.S. and Canadian industries and industries’ dependence on external funding as an identification mechanism, we show that increases in the cost of funds affect TFP growth negatively. The effect is non‐monotonic depending on a sector's external finance need. This paper presents a theoretical model that produces the observed non‐monotonic effect of financial shocks on TFP growth and suggests that financial shocks distort the allocation of factors across firms even within an industry, thus reducing TFP growth.