The U.S. economy has experienced a rapid expansion in industries with low productivity growth. In this paper, we investigate whether financial development improves productivity growth in these industries. Testing reveals that stagnant industries experience remarkable post-deregulation...

The US economy has experienced a rapid expansion in industries with low productivity growth. In this paper, we investigate the effect of financial development on productivity growth in these so-called stagnant industries. We show that while banking reforms have an insignificant effect on...