Public ownership of banks and economic growth: The impact of country heterogeneity

Economics of Transition

Volumn 19, Issue 3, 2011, Pages 407-441

  Körner, Tobias ^a   Schnabel, Isabel ^b  

^a Ruhr Graduate School in Economics   (Germany)

^b JOHANNES GUTENBERG UNIVERSITY MAINZ   (Germany)

Author keywords

Economic growth; Financial development; Initial conditions; Public banks; Quality of political institutions

Indexed keywords

BANKING; ECONOMIC GROWTH; ECONOMIC IMPACT; FINANCIAL MARKET; FINANCIAL POLICY; GROSS DOMESTIC PRODUCT; INSTITUTIONAL FRAMEWORK; OWNERSHIP; POLITICAL ECONOMY; POLITICAL SYSTEM;

EID: 79959742718     PISSN: 09670750     EISSN: 14680351     Source Type: Journal    
DOI: 10.1111/j.1468-0351.2011.00421.x     Document Type: Article

References (41)

1. Altunbas, Y., Evans, L. and Molyneux, P. (2001). 'Bank ownership and efficiency', Journal of Money Credit and Banking, 33, pp. 926-954.
2. Andrianova, S., Demetriades, P. and Shortland, A. (2009). 'Is government ownership of banks really harmful to growth?' Working Paper No. 09/11, Department of Economics, University of Leicester.
3. Banerjee, A. (1997). 'A theory of misgovernance', Quarterly Journal of Economics, 112, pp. 289-1332.
4. Barro, R. J. and Lee, J.-W. (2000). 'International data on educational attainment: Updates and implications', CID Working Paper No. 042, Center for International Development, Cambridge, MA: Harvard University.
5. Barth, J., Caprio, G. and Levine, R. (2004). 'Bank regulation and supervision: What works best? Journal of Financial Intermediation, 13, pp. 205-248.
6. Beck, T. and Levine, R. (2002). 'Industry growth and capital allocation: Does having a market- or bank-based system matter? Journal of Financial Economics, 64, pp. 147-180.
7. Beck, T., Levine, R. and Loayza, N. (2000). 'Finance and the sources of growth', Journal of Financial Economics, 58, pp. 261-300.
8. Behr, P., Norden L. and Noth, F. (2010). 'Corporate financial constraints, bank governance, and financial system stability', SSRN Working Paper. Available at: .
9. Bils, M. and Klenow, P. J. (2000). 'Does schooling cause growth? American Economic Review, 90, pp. 1160-1183.
10. Bonin, J. P., Hasan, I. and Wachtel, P. (2005a). 'Bank performance, efficiency, and ownership in transition countries', Journal of Banking and Finance, 29, pp. 31-53.
11. Bonin, J. P., Hasan, I. and Wachtel, P. (2005b). 'Privatization matters: Bank efficiency in transition countries', Journal of Banking and Finance, 29, pp. 2155-2178.
12. Caprio, G. and Honohan, P. (2001). Finance for Growth: Policy Choices in a Volatile World, Oxford: Oxford University Press.
13. Cohen, D. and Soto, M. (2007). 'Growth and human capital: good data, good results', Journal of Economic Growth, 12, pp. 51-76.
14. Detragiache, E., Gupta, P. and Tressel, T. (2005). 'Finance in lower income countries - an empirical exploration', Working Paper No. 05/167, Washington, DC: International Monetary Fund.
15. Dinc, I. S. (2005). 'Politicians and banks: Political influences on government-owned banks in emerging markets', Journal of Financial Economics, 77, pp. 453-479.
16. Fang, Y., Hasan, I. and Marton, K. (2011). 'Bank efficiency in South-Eastern Europe: The role of ownership, market power, and institutional development', Economics of Transition, 19(3), pp. 495-520.
17. Freedom House (2007). Freedom in the World Country Ratings 1972-2007. Online publication available at: .
18. Gerschenkron, A. (1962). Economic Backwardness in Historical Perspective, Cambridge: Belknap Press of Harvard University Press.
19. Guinnane, T. W. (2002). 'Delegated monitors, large and small: Germany's banking system, 1800-1914', Journal of Economic Literature, 40, pp. 73-124.
20. Gurr, T. R., Jaggers, K. and Marshall, M. G. (2007). Polity IV Project: Political Regime Characteristics and Transitions, 1800-2007, Arlington, VA: Center for Systemic Peace and Center for Global Policy at the George Mason University.
21. Hainz, H. and Hakenes, C. (2008). 'The politician and his banker', Preprints of the Max Planck Institute for Research on Collective Goods Bonn 2008/1, Bonn: Max Planck Institute.
22. Hakenes, H. and Schnabel, I. (2010). 'The threat of capital drain: A rationale for regional public banks? Journal of Institutional and Theoretical Economics, 166, pp. 662-689.
23. Hanousek, J., Hajkova, D. and Filer, R. K. (2008). 'A rise by any other name? Sensitivity of growth regression to data source', Journal of Macroeconomics, 30, pp. 1188-1206.
24. Hart, O., Shleifer, A. and Vishny, R. W. (1997). 'The proper scope of government: Theory and application to prisons', Quarterly Journal of Economics, 112, pp. 1127-1162.
25. Havrylchyk, O. and Jurzyk, E. (2011). 'Profitability of foreign banks in Central and Eastern Europe: Does the entry mode matter? Economics of Transition, 19(3), pp. 443-472.
26. Heston, A., Summers, R. and Atten, B. (2009). Penn World Table Version 6.3, Pennsylvania: Center for International Comparisons of Production and Prices at the University of Pennsylvania.
27. International Monetary Fund (2003). Germany: Financial System Stability Assessment, IMF Country Report No. 03/343, Washington, DC: IMF.
28. International Monetary Fund (2006). Germany Selected Issues, IMF Country Report No. 06/436, Washington, DC: IMF.
29. International Monetary Fund (2008). International Financial Statistics, October 2008, Washington, DC: IMF.
30. Karas, A., Schoors K. and Weill, L. (2010). 'Are private banks more efficient than public banks? Evidence from Russia', Economics of Transition, 18, pp. 209-244.
31. La Porta, R., Lopez-de-Silanes, F. and Shleifer, A. (2002). 'Government ownership of banks', Journal of Finance, 57, pp. 265-301.
32. Levine, R. and Zervos, S. (1998). 'Stock markets, banks, and economic growth', American Economic Review, 88, pp. 537-558.
33. Megginson, W. L. (2005). The Financial Economics of Privatization, New York: Oxford University Press.
34. Micco, A., Panizza, U. and Yanez, M. (2007). 'Bank ownership and performance: Does politics matter?' Journal of Banking and Finance, 31, pp. 219-241.
35. Minier, J. A. (1998). 'Democracy and growth: Alternative approaches', Journal of Economic Growth, 3, pp. 241-266.
36. Nuxoll, D. A. (1994). 'Differences in relative prices and international differences in growth rates', American Economic Review, 84, pp. 1423-1436.
37. Perotti, E. and Vorage, M. (2010). 'Bank ownership and financial stability', TI Discussion Paper 2010-022/2, Tinbergen Institute, Erasmus Universiteit Rotterdam, Universiteit van Amsterdam, and Vrije Universiteit Amsterdam.
38. Rajan, R. G. and Zingales, L. (1998). 'Financial dependence and growth', American Economic Review, 88, pp. 559-586.
39. Shleifer, A. (1998). 'State versus private ownership', Journal of Economic Perspectives, 12, pp. 133-150.
40. Shleifer, A. and Vishny, R. W. (1994). 'Politicians and firms', Quarterly Journal of Economics, 109, pp. 995-1025.
41. United Nations Statistics Division (2008). National Accounts Main Aggregates Database, Geneva: UN. Available online at: .