More Bankers, More Growth? Evidence from OECD Countries

Gunther Capelle-Blancard and Claire Labonne

Working Papers from CEPII research center

Abstract: In this paper, we reexamine empirically the finance/growth nexus. We argue that financial deepening should not only be assessed with familiar measures of financial activities outputs (e.g. credit volume), but also through its inputs (e.g. the relative number of employees in the financial industry) or the efficiency of the financial intermediation process (measured in this paper by the ratio credit volume to number of employees). Overall, our study confirms the absence of a positive relationship between financial deepening and economic growth for OECD countries over the last forty years.

Keywords: Finance-growth nexus; optimal size of the financial sector; financial intermediation; bank efficiency; system and difference GMM; BANKING SYSTEM; GROWTH (search for similar items in EconPapers)
JEL-codes: G20 (search for similar items in EconPapers)
Date: 2011-11
New Economics Papers: this item is included in nep-ban and nep-fdg
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8)

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Related works:
Journal Article: More Bankers, More Growth? Evidence from OECD Countries (2016)
Working Paper: More Bankers, More Growth? Evidence from OECD Countries (2016)
Working Paper: More Bankers, More Growth? Evidence from OECD Countries (2016)
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Persistent link: https://EconPapers.repec.org/RePEc:cii:cepidt:2011-22

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