Finance and Growth in a Bank-Based Economy: Is it Quantity or Quality that Matters?

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Small Banks and Local Economic Development (2015, methodology): “Then, from Koetter and Wedow (2010), who find that bank quality (proxied by cost efficiency) explains economic growth, we use a direct cost efficiency measure derived from stochastic cost frontier estimation.”
Institutional quality thresholds and the finance Growth nexus. (2013, result): “16 This finding is in agreement with Koetter and Wedow’s (2010) findings; they showed that the quality indicator of financial development has a significantly positive effect on growth using a bank-specific efficiency indicator.”