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Title: Government ownership of banks, institutions, and financial development.
Authors: Andrianova, Svetlana
Demetriades, Panicos O.
Shortland, Anja
First Published: 2008
Citation: Journal of Development Economics, 2008, 85, (1-2), pp. 218-252.
Abstract: Using a suitably modified locational model of banking, we examine the influence of institutions, such as deposit contract enforcement, in explaining the share of government owned banks in the banking system. We present cross-country evidence suggesting that institutional factors are relatively more important determinants of the share of state banks than political or historical ones. We argue that rather than privatizing or subsidizing state banks governments in developing countries should build institutions that foster the development of private banking.
DOI Link: 10.1016/j.jdeveco.2006.08.002
ISSN: 0304-3878
Type: Article
Appears in Collections:Published Articles, Dept. of Economics

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