Lazzarini, Sergio G.; Musacchio, Aldo; … - In: World Development 66 (2015) C, pp. 237-253
. We study the effect of loans and equity investments of the Brazilian National Development Bank (BNDES) and find that they … expenditures due to the subsidies accompanying loans. However, BNDES does not systematically lend to underperforming firms. Our … results indicate that BNDES subsidizes firms that could fund their projects with other sources of capital. …