Work

Government Ownership of Banks

Year: 2002

Type: article

Abstract: 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.

Source: The Journal of Finance

DOI: 10.1111/1540-6261.00422

Authors: Rafael La Porta, Florencio Lopez‐De‐Silanes, Andrei Shleifer

Institutions: Harvard University, Harvard University Press, Yale University

Language: English

Topic: Banking stability, regulation, efficiency

Subfield: Finance

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDG: Peace, justice, and strong institutions

Open Access status: bronze

Funder: Harvard University