Government Ownership of Banks
Государственная собственность банков
2002-02-01
SCID: 54.1/43jjgym5
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financial developmentgovernment ownership of banksper capita income growthproductivity growthproperty rights protection
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Abstract (AI)
ABSTRACT We assemble data on government ownership of banks around the world. The data show that such ownership is large and pervasive, and higher in countries with low levels of per capita income, backward financial systems, interventionist and inefficient governments, and poor protection of property rights. Higher government ownership of banks in 1970 is associated with slower subsequent financial development and lower growth of per capita income and productivity. This evidence supports “political” theories of the effects of government ownership of firms.
Key Findings
1
Bank state ownership is higher where governments are more interventionist and inefficient and where property-rights protection is weaker.
2
Government ownership of banks is large and widespread worldwide, especially in countries with lower per-capita income and less-developed financial systems.
3
Higher government bank ownership in 1970 is associated with slower subsequent financial development.
4
Higher initial government ownership of banks is associated with lower subsequent growth in per-capita income and productivity.
5
The evidence supports political theories that government ownership of firms produces adverse economic effects.
Research Object
Government ownership of banks
Research Subject
the prevalence and economic effects of government bank ownership, including its associations with financial development, per-capita income growth, and productivity
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Publication Date
2002-02-01
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