Abstract

https://ssrn.com/abstract=236434
 
 

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Government Ownership Of Banks


Rafael La Porta


Dartmouth College - Tuck School of Business; National Bureau of Economic Research (NBER)

Florencio Lopez de Silanes


SKEMA Business School; National Bureau of Economic Research (NBER)

Andrei Shleifer


Harvard University - Department of Economics; National Bureau of Economic Research (NBER); European Corporate Governance Institute (ECGI)

March 1, 2000

Harvard Institute of Economic Research Paper No. 1890, KSG Working Paper No. 01-016

Abstract:     
In this paper, we investigate a neglected aspect of financial systems of many countries around the world: government ownership of banks. We assemble data which establish four findings. First, government ownership of banks is large and pervasive around the world. Second, such ownership is particularly significant in countries with low levels of per capita income, underdeveloped financial systems, interventionist and inefficient governments, and poor protection of property rights. Third, government ownership of banks is associated with slower subsequent financial development. Finally, government ownership of banks is associated with lower subsequent growth of per capita income, and in particular with lower growth of productivity rather than slower factor accumulation. This evidence is inconsistent with optimistic "development" theories of government ownership of banks common in the 1960s, but supports the more "political" theories of the effects of government ownership of firms.

Number of Pages in PDF File: 58


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Date posted: August 9, 2000  

Suggested Citation

La Porta, Rafael and Lopez de Silanes, Florencio and Shleifer, Andrei, Government Ownership Of Banks (March 1, 2000). Harvard Institute of Economic Research Paper No. 1890, KSG Working Paper No. 01-016. Available at SSRN: https://ssrn.com/abstract=236434 or http://dx.doi.org/10.2139/ssrn.236434

Contact Information

Rafael La Porta
Dartmouth College - Tuck School of Business ( email )
Hanover, NH 03755
United States
National Bureau of Economic Research (NBER)
1050 Massachusetts Avenue
Cambridge, MA 02138
United States
Florencio Lopez de Silanes (Contact Author)
SKEMA Business School ( email )
Campus de Lille
Avenue Willy Brandt, Euralille
Lille, 59777
France
National Bureau of Economic Research (NBER)
1050 Massachusetts Avenue
Cambridge, MA 02138
United States
Andrei Shleifer
Harvard University - Department of Economics ( email )
Littauer Center
Cambridge, MA 02138
United States
617-495-5046 (Phone)
617-496-1708 (Fax)
HOME PAGE: http://www.economics.harvard.edu/~ashleife/
National Bureau of Economic Research (NBER)
1050 Massachusetts Avenue
Cambridge, MA 02138
United States
European Corporate Governance Institute (ECGI)
c/o ECARES ULB CP 114
B-1050 Brussels
Belgium
HOME PAGE: http://www.ecgi.org
Feedback to SSRN


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