Banks' inefficiency and economic growth: a micro-macro approach

Riccardo (Jack) Lucchetti, Luca Papi and Alberto Zazzaro ()

Heterogeneity and monetary policy from Universita di Modena e Reggio Emilia, Dipartimento di Economia Politica

Abstract: This paper offers a methodological contribution to empirical analysis of the relationships between banking and economic growth by proposing the microeconomic efficiency of banks as a new proxy for the state of development of the banking system. This measure is partly able to overcome the problem of causality and to capture the allocative function of banks.This methodology is then applied to the banking system and economic growth in the Italian regions, using a dynamic panel approach. The econometric results show the existence of an independent effect exerted by banking efficiency on real growth and the importance of the allocative function of banks.

Keywords: Bank efficiency; regional growth (search for similar items in EconPapers)
JEL-codes: C33 G21 O40 (search for similar items in EconPapers)
Pages: pages 26
Date: 2000-04
New Economics Papers: this item is included in nep-eff
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (9)

Downloads: (external link)
http://morespace.unimore.it/giuseppemarotta/wp-con ... 014/11/towb-pap1.pdf (application/pdf)

Related works:
Journal Article: Banks’ Inefficiency and Economic Growth: A Micro‐Macro Approach (2001)
Working Paper: Banks' Inefficiency and Economic Growth A Micro-Macro Approach (2001)
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:mod:modena:0004

Access Statistics for this paper

More papers in Heterogeneity and monetary policy from Universita di Modena e Reggio Emilia, Dipartimento di Economia Politica Contact information at EDIRC.
Bibliographic data for series maintained by Giuseppe Marotta ().