... instrumental variable. Social implications First, governments in developing countries should allocate more money to buy from private firms. the findings on the interaction between government contracts and credit constraints suggest that governments should encourage the financial sector to accept using...

... motivates investment in innovation by private-sector partners. These results speak to how effectively government contracting motivates private-sector innovation, which clearly has implications for fiscal stewardship. Additionally, private-sector innovation affects stock price formation. Collectively...