Banks, Financial Markets and Growth in Developed Countries: a Survey of the empirical literature

Michiel Bijlsma and Andrei Dubovik

No 266, CPB Discussion Paper from CPB Netherlands Bureau for Economic Policy Analysis

Abstract: We review the literature on finance and growth with a focus on developed countries We find little evidence that increases in the traditional proxies for financial development will enhance growth in these countries. Potential causes include: decreasing returns, misallocation of credit, difficulties in measuring efficient financial development, and increasing macroeconomic or systemic risk. To stimulate efficient financial intermediation, policy makers should focus on lending to firms instead of consumers; avoid too high concentration levels; and keep government ownership of banks at a minimum.

JEL-codes: G01 G38 (search for similar items in EconPapers)
Date: 2014-02
New Economics Papers: this item is included in nep-ban, nep-fmk, nep-gro and nep-sog
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Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:cpb:discus:266

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