Berkowitz, Daniel; Hoekstra, Mark; Schoors, Koen - In: Journal of Development Economics 110 (2014) C, pp. 93-106
This paper examines whether privatizing state-owned banks improves finance and economic growth. To do so, we exploit … growth after the emergence of bank finance. Results indicate that while privatized banking increased lending significantly …, it did not increase economic growth. However, privatization did increase growth when banks retained fewer political …