International Review of Environmental and Resource Economics > Vol 18 > Issue 1-2

The Credit–Output–Productivity Nexus: A Comprehensive Review

Cosimo Magazzino, Department of Political Science, Roma Tre University, Italy, , Fabio Gaetano Santeramo, Department of Agriculture, University of Foggia, Italy, and Institute of Economics and Rural Development, Lithuanian Centre for Social Sciences, Lithuania, , Nicolas Schneider, Department of Geography & Environment, The London School of Economics and Political Science, UK,
Suggested Citation
Cosimo Magazzino, Fabio Gaetano Santeramo and Nicolas Schneider (2024), "The Credit–Output–Productivity Nexus: A Comprehensive Review", International Review of Environmental and Resource Economics: Vol. 18: No. 1-2, pp 77-121.

Publication Date: 31 Jan 2024
© 2024 C. Magazzino, et al.
Productivity measurement and analysis,  International business,  Environmental economics,  Climate change
JEL Codes: O13Q14
Credit accessTFPeconomic growthagricultural sectorclimate changewaste managementcircular economy


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In this article:
1 Introduction 
2 Review of the Literature 
3 Conclusions and Policy Implications 


The interactions between financial development, productivity and growth have been extensively studied in the literature. However, their nature, directions and magnitudes remain unclear, and no consensus has been reached, notably in the agricultural sector. We conduct a state-of-the-art review of this topic and also present alternative environmental determinants (climate change and extreme event issues; water, soil and land management practices; waste management and circular economy) of agricultural productivity. In doing so, we show where this domain has fallen short on methodological approaches, while emphasizing the relevant feature characterizing this empirical debate. Moreover, we emphasize the heterogeneity of the linkages between financial development, productivity and growth across income groups. Along with prospects for future research, some policy recommendations are offered.