The role of banking development in economic growth: Quantity versus quality

Guangdong Xu

Economic Affairs, 2025, vol. 45, issue 2, 261-276

Abstract: This article surveys the literature on the relationship between banking development and economic growth, with particular attention given to the role of the efficiency (quality) dimension of banking development. Overlooking banking efficiency in explaining economic growth may lead to serious omitted variable bias. However, incorporating banking efficiency into growth models has proved to be a challenging task. There is no agreement in the literature on how to define, measure, and evaluate banking efficiency. In addition, most studies focus on transformation efficiency inside banks and overlook efficiency in the process of credit allocation.

Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
https://doi.org/10.1111/ecaf.12699

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bla:ecaffa:v:45:y:2025:i:2:p:261-276

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=0265-0665

Access Statistics for this article

Economic Affairs is currently edited by Philip Booth

More articles in Economic Affairs from Wiley Blackwell
Bibliographic data for series maintained by Wiley Content Delivery ().