The banking system, industrialization and economic growth in Norway, 1850-1914

Abstract

Taking the views of Alexander Gerschenkron and Rondo Cameron on the role of banking in economic growth as a point of departure, the article examines the relationship between banking, industrialization and economic growth in Norway before 1914. It takes issue with the generally pessimistic view held by other Norwegian historians, a view that ascribes slow industrial growth to the underdeveloped role of the commercial banking sector. The structural characteristics of the Norwegian economy obviated the need for a strong commercial banking sector. Savings banks and private arrangements complemented the government sources of credit in providing adequate finance to all sectors of the Norwegian economy. Thus, the slow growth of commercial banking did not seriously hamper Norwegian economic growth before 1914. © 1993 Taylor & Francis Group, LLC.