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Do State-Owned Banks Promote Growth? Cross-Country Evidence for Manufacturing Industries

Arturo José Galindo () and Alejandro Micco ()

No 4325, Research Department Publications from Inter-American Development Bank, Research Department

Abstract: This paper tests the efficiency of different structures of bank ownership in terms of its ability to target manufacturing sectors in need of credit. We find that state- owned banks do not play a significant role in the development of industries that rely more on external finance and/or that have less tangible assets to pledge as collateral.

Date: 2003-02
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