IDEAS home Printed from https://ideas.repec.org/h/spr/sprchp/978-981-19-2753-9_11.html
   My bibliography  Save this book chapter

Innovations, Market Access and Productivity of Smaller Firms: Examining the Role of Financial Development

In: Digital Transformation and Economic Development in Bangladesh

Author

Listed:
  • Monzur Hossain

    (Bangladesh Institute of Development Studies)

Abstract

The chapter shows that financial development at the local level could play a complementary role that enhances smaller firms’ investment in productivity-enhancing innovations, however, in a disproportionate way in terms of firms’ market orientation. More specifically, access to finance supports external market-oriented firms to a greater extent than the local market-oriented firms that are usually less productive. Productive firms invest in innovations to carve out access to external markets and achieve higher growth. The findings in this chapter provide deeper insights into the benefits of easy access (digital) to finance and firms’ intention to invest in innovations through the acquisition of IT or other technologies. Digital finance could be one of the attributes of local financial development as digital finance reduces transaction costs. The study uses sub-district level firm survey data of 1100 manufacturing SMEs combined with administrative data on financial development from Bangladesh. The findings underscore the need for greater financial inclusion and the adoption of technologies for achieving balanced regional growth.

Suggested Citation

  • Monzur Hossain, 2022. "Innovations, Market Access and Productivity of Smaller Firms: Examining the Role of Financial Development," Springer Books, in: Digital Transformation and Economic Development in Bangladesh, chapter 0, pages 225-245, Springer.
    • Handle: RePEc:spr:sprchp:978-981-19-2753-9_11
    DOI: 10.1007/978-981-19-2753-9_11
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:sprchp:978-981-19-2753-9_11. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.