More Bankers, More Growth? Evidence from OECD Countries

Gunther Capelle-Blancard and Claire Labonne
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Claire Labonne: PSE - Paris School of Economics - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - EHESS - École des hautes études en sciences sociales - ENPC - École nationale des ponts et chaussées - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, PJSE - Paris Jourdan Sciences Economiques - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - EHESS - École des hautes études en sciences sociales - ENPC - École nationale des ponts et chaussées - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement

Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) from HAL

Abstract: We re-examine empirically the finance–growth relationship. We argue that financial deepening should not only be assessed via the familiar measures of financial activity output—the volume of credit—but also through its inputs—for example, the relative number of employees in the financial industry—or the efficiency of the financial-intermediation process. The latter is measured in this paper by the ratio of credit volume to the number of financial-sector employees. We compare these measures using the econometric approach recommended by Roodman (2009). Overall, we fail to find a positive relationship between financial deepening and economic growth in OECD countries over the last 40 years.

Keywords: Bank; Growth; Allocation of talent; Financialization (search for similar items in EconPapers)
Date: 2016-02
Note: View the original document on HAL open archive server: https://hal.science/hal-01297090v1
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Published in Economic Notes, 2016, 45 (1), pp.37-51. ⟨10.1111/ecno.12051⟩

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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 (2011)
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Persistent link: https://EconPapers.repec.org/RePEc:hal:cesptp:hal-01297090

DOI: 10.1111/ecno.12051

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