Financial development and growth in European regions

We study the relationship between financial development and economic growth across 110 European regions from 1997 to 2018. single out two dimensions of in data capturing capillarity bank branches agglomeration industry at large their with regional growth. To establish a causal nexus, we employ two-ways fixed effects, instrumental variables, Arellano–Bond estimator. Our estimates indicate that what matters most for is complex sector rather than mere presence branches.