Access to Finance, Product Innovation and Middle-Income Traps

doi:10.1016/j.rie.2017.03.004

Publication:
Access to Finance, Product Innovation and Middle-Income Traps

dc.contributor.author	Agénor, Pierre-Richard
dc.contributor.author	Canuto, Otaviano
dc.date.accessioned	2018-02-05T21:53:31Z
dc.date.available	2018-02-05T21:53:31Z
dc.date.issued	2017-06
dc.description.abstract	Interactions between access to finance, product innovation, and labor supply are studied in a two-period overlapping generations model with an endogenous skill distribution and financial market imperfections. In the model lack of access to finance (induced by high monitoring costs) has an adverse effect on innovation activity not only directly but also indirectly, because too few individuals may choose to invest in skills. If monitoring costs fall with the number of successful projects, multiple steady states may emerge, one of which defined as a middle-income trap, characterized by low wages in the design sector, a low share of the labor force engaged in innovation activity, and low growth. A sufficiently ambitious policy aimed at alleviating constraints on access to finance by innovators may allow a country to move away from such a trap by promoting the production of ideas and improving incentives to invest in skills.	en
dc.identifier.citation	Research in Economics
dc.identifier.doi	10.1596/29320
dc.identifier.issn	1090-9443
dc.identifier.uri	https://hdl.handle.net/10986/29320
dc.publisher	Elsevier
dc.rights	CC BY-NC-ND 3.0 IGO
dc.rights.holder	World Bank
dc.rights.uri	http://creativecommons.org/licenses/by-nc-nd/3.0/igo
dc.subject	FINANCING CONSTRAINTS
dc.subject	INNOVATION
dc.subject	LABOR SUPPLY
dc.subject	ACCESS TO FINANCE
dc.subject	LABOR SKILLS
dc.subject	MIDDLE-INCOME TRAP
dc.title	Access to Finance, Product Innovation and Middle-Income Traps	en
dc.type	Journal Article	en
dc.type	Article de journal	fr
dc.type	Artículo de revista	es
dspace.entity.type	Publication
okr.associatedcontent	https://www.sciencedirect.com/science/article/pii/S109094431630326X Journal website (version of record)	en
okr.associatedcontent	https://openknowledge.worldbank.org/handle/10986/17307 Working paper version (pre-print)	en
okr.crossref.title	Access to Finance, Product Innovation and Middle-Income Traps
okr.date.disclosure	2019-03-24
okr.doctype	Publications & Research::Journal Article
okr.doctype	Publications & Research
okr.externalcontent	External Content
okr.identifier.doi	10.1016/j.rie.2017.03.004
okr.identifier.doi	10.1596/29320
okr.identifier.report	125239
okr.journal.nbpages	337-55
okr.language.supported	en
okr.peerreview	Academic Peer Review
okr.topic	Finance and Financial Sector Development::Access to Finance
okr.topic	Macroeconomics and Economic Growth::Economic Modeling and Statistics
okr.topic	Macroeconomics and Economic Growth::Economic Theory & Research
okr.topic	Science and Technology Development::Innovation
okr.topic	Social Protections and Labor::Labor Markets
okr.volume	71(2)
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relation.isAuthorOfPublication.latestForDiscovery	9f42d4a7-f5f2-50a9-bba7-b0fa16636471