Government debt and innovation-led growth.
Economic growth in advanced economies has slowed since the early 2000s, while government debt has risen. This article sheds light on this high-debt, low-growth environment by highlighting innovation as a mechanism. It argues that high government debt leads firms to cut back on R&D investment, potent...
| Publicado en: | Oxford Economic Papers Vol. 78; no. 2; pp. 560 - 585 |
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| Formato: | Artículo |
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Oxford University Press / USA
Apr2026
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| Acceso en línea: | Ver este registro en EBSCOhost |
| fields | @attributes: recordID: 1 pdfLink: plink: https://search.ebscohost.com/login.aspx?direct=true&db=ssf&AN=194211919&site=ehost-live header: @attributes: shortDbName: ssf uiTerm: 194211919 longDbName: Social Sciences Full Text (H.W. Wilson) uiTag: AN controlInfo: bkinfo: jinfo: jid: 00307653 OXE jtl: Oxford Economic Papers issn: 00307653 maglogo: N pubinfo: dt: Apr2026 vid: 78 iid: 2 pid: 622 pub: Oxford University Press / USA artinfo: ui: 194211919 10.1093/oep/gpag008 ppf: 560 ppct: 25 formats: tig: atl: Government debt and innovation-led growth. aug: au: Sever, Can affil: International Monetary Fund, 700 19th Street, N.W., Washington, DC 20431, United States su: Public debts Technological innovations Fiscal policy Manufacturing industries Economic trends Economic expansion Research funding Financial institutions sug: subj: Public debts Technological innovations Fiscal policy Manufacturing industries Economic trends Economic expansion Public Finance Activities Consumer Lending Research funding Financial institutions keyword: copyrightHolder:Oxford University Press copyrightYear:2026 E44 economic growth financial development fiscal policy government debt H32 H63 inLanguage:en innovation O33 O40 O43 O47 publisher:Oxford University Press R&D sameAs:https://dx.doi.org/10.1093/oep/gpag008 copyrightHolder:Oxford University Press copyrightYear:2026 E44 economic growth financial development fiscal policy government debt H32 H63 inLanguage:en innovation O33 O40 O43 O47 publisher:Oxford University Press R&D sameAs:https://dx.doi.org/10.1093/oep/gpag008 ab: Economic growth in advanced economies has slowed since the early 2000s, while government debt has risen. This article sheds light on this high-debt, low-growth environment by highlighting innovation as a mechanism. It argues that high government debt leads firms to cut back on R&D investment, potentially by amplifying policy uncertainty and financing frictions. Based on data from manufacturing industries since 1980, the results show that high government debt predicts a disproportionate and persistent growth slowdown in industries that rely more on R&D. This pattern is consistent with R&D investment falling in those industries when debt is high. Importantly, this effect is weaker in countries with deeper or more open financial systems, suggesting that better access to finance helps protect innovation when debt is high. These findings imply that safeguarding innovation is crucial to sustain growth in the current high-debt environment. pubtype: Academic Journal doctype: Article src: R language: English refInfo: copyright: @attributes: flag: N holdings: @attributes: islocal: N |
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