02211cas a2200265 a 4500 AALejournalIMF017888 230101c9999 xx r poo 0 0eng d 5.00 USD 9781484316726 1018-5941 BD-DhAAL BD-DhAAL Choi, Sangyup. Fiscal Stabilization and Growth : Evidence from Industry-level Data for Advanced and Developing Economies / Sangyup Choi, Davide Furceri, Joao Tovar Jalles. Washington, D.C. : International Monetary Fund, 2017. 1 online resource (48 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students Medium-term growth can be enhanced by fiscal stabilization. However, to date, no systematic effort has been made to study the specific channels through which fiscal stabilization affects growth. This paper examines the effect of fiscal stabilization on industrial growth and how this effect depends on different technological characteristics. It does so by applying a difference-in-difference approach to an unbalanced panel of 22 manufacturing industries for 55 advanced and developing economies over the period 1970-2014. The results suggest that fiscal stabilization fosters growth in industries with: i) higher external financial dependence and lower asset fixity; ii) higher degree of labor intensity; iii) higher investment lumpiness and relationship-specific input usage. These effects tend to be larger during economic recessions. The results are robust to different measures of fiscal stabilization and the inclusion of various interactions between a broad set of macroeconomic variables and production technologies. Mode of access: Internet Furceri, Davide. Jalles, Joao Tovar. IMF Working Papers; Working Paper ; No. 2017/198 Full text available on IMF http://elibrary.imf.org/view/journals/001/2017/198/001.2017.issue-198-en.xml IMF e-Library