A research on economic growth effect of monetary policies under corporate cash holding behavior

2023 Fiscal Year Final Research Report

• Project/Area Number: 20K13449
• Research Category: Grant-in-Aid for Early-Career Scientists
• Allocation Type: Multi-year Fund
• Review Section: Basic Section 07010:Economic theory-related
• Research Institution: Chiba University
• Principal Investigator: Suzuki Keishun 千葉大学, 大学院社会科学研究院, 准教授 (30748520)
• Project Period (FY): 2020-04-01 – 2024-03-31
• Keywords: 経済成長 / イノベーション / 特許保護 / 現金保有

Outline of Final Research Achievements

In this project, I constructed an endogenous growth model that focuses on the fact that real-world firms use their holding cash for investments. This is in contrast to existing theories that assume all profits are distributed as dividends. As a result, I found that policies aimed at increasing the cash of follower firms are effective in stimulating R&D investment. For instance, policies that strengthen the protection of existing patents can have the effect of suppressing R&D investment by reducing the profits of follower firms. On the other hand, there is a positive effect where the simple Schumpeterian effect increases the incentive for R&D investment. Consequently, the total effect is determined by which of the former or latter effects is dominant.

Free Research Field

経済成長理論

Academic Significance and Societal Importance of the Research Achievements

労働力人口の減少に直面する日本において，生産性の向上を通じた経済成長をいかに達成するかは非常に重要な課題である．本研究では，現金保有を行う企業の研究開発投資をいかに刺激するか，という視点から新たな理論研究を行なったものである．現実の企業は外部資金よりも手元現金を積極的に用いることから，研究開発投資を行う企業の利潤を増加して資金制約を緩和するのが望ましいという本研究の主張は，一定の説得力を持つものである．