Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/36709
Authors: 
Andrianova, Svetlana
Demetriades, Panicos
Shortland, Anja
Year of Publication: 
2010
Series/Report no.: 
Discussion papers // German Institute for Economic Research 987
Abstract: 
We show that previous results suggesting that government ownership of banks is associated with lower long run growth rates are not robust to adding more 'fundamental' determinants of economic growth. We also present new cross-country evidence for 1995-2007 which suggests that, if anything, government ownership of banks has been robustly associated with higher long run growth rates. While acknowledging that cross-country results need not imply causality, we nevertheless provide a conceptual framework, drawing on the global financial crisis of 2008-09, which explains why under certain circumstances government owned banks could be more conducive to economic growth than privately-owned banks.
Subjects: 
Public banks
economic growth
quality of governance
regulation
political institutions
JEL: 
O16
G18
G28
K42
Document Type: 
Working Paper

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