Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/92738
Authors: 
Ogawa, Kazuo
Year of Publication: 
2004
Series/Report no.: 
ISER Discussion Paper, Institute of Social and Economic Research, Osaka University 607
Abstract: 
Based on a panel data set of Japanese manufacturing firms in research-intensive industries, we investigate quantitatively the extent to which debt outstandings in the 90s affected the firm's R&D activities. We find that massive debt outstandings had significantly negative effect on R&D investment in the 90s. We also find that investment on R&D was closely linked to the firm-level total factor productivity growth in the 90s. In fact, ten-percentage-point increase of debt-asset ratio lowered the firm-level total factor productivity growth rate by 0.72 percentage point for 1999-2001 by way of withering R&D activities, while the firm-level TFP growth rate remains almost intact for 1988-91.
Subjects: 
R&D investment
Debt
Total factor productivity
JEL: 
D21
D24
O32
Document Type: 
Working Paper

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