Paper Title
Exploring The Influence of Technological Progress on Product Market Power From A Financial Constraints Perspective

Abstract
Few studies have explored the importance of technological progress from firm-level perspectives. Moreover, no research has examined whether technological progress increases firms� product market power. When financial constraints are present or absent in a firm, technological progress may differently influence product market power. This empirical study examines firms in the United States over 25 years, from 1990 to 2014, which uses total factor productivity as an indicator to measure technological progress attained by firms. The effect of technological progress on product market power is investigated from a financial constraints perspective. We find that the firm with higher technological progress can enhance product market power. The evidence indicates that the firm with higher financial constraints will decrease the positive impact of TFP on product market power. Furthermore, the results show that the firm with higher cash holdings can increase in technological progress, and hence strengthentheir product market power. Keywords: Financial Constraints, Technology Progress, Product Market Power Total Factor Productivity