between productivity and bank credit in the context of different financial market set-ups, we introduce a model of overlapping … generations of entrepreneurs under complete and incomplete credit markets. Then, we exploit firm-level data for France, Germany … and Italy to explore the relation between bank credit and productivity following the main derivations of the model. We …

We document a major mechanism – inorganic growth – which drives a wedge between micro-study effects of credit supply … shocks and aggregate effects. Exploiting a quasi-exogenous positive shock to credit supply, we document that affected firms …, and the quality of the credit-supply-induced acquisition activity is low. The market for inorganic growth is large …

This paper examines the effects of Islamic banking on the causal linkages between credit and GDP by comparing two sets … analysis provides evidence of long-run causality running from credit to GDP in countries with Islamic banks only. This is …