The finance-growth nexus and public-private ownership of banks in Brazil since 1870

Campos, N., Karanasos, M., Koutroumpis, P. ORCID: https://orcid.org/0000-0002-2281-7236 and Glebkina, E. (2025) The finance-growth nexus and public-private ownership of banks in Brazil since 1870. Annals of Operations Research, 352 (3). pp. 835-858. ISSN 1572-9338 doi: 10.1007/s10479-024-05924-7

Abstract/Summary

How does finance affect economic growth? And does ownership matter? This paper investigates whether and how deposits in public vis-a-vis in private banks affect economic growth. It uses the power-ARCH framework with annual time series for Brazil from 1870 to 2018. There are three main findings: (a) the indirect impact of domestic financial development on economic growth is negative, whereas that of international financial development is positive, (b) the direct short-run effect of public and private banks is negative, while only for the latter does the positive direct long-run effect dominate, and (c) the indirect and direct short-run effect of public ownership banks is greater in size than that of private ownership banks.

Item Type	Article
URI	https://centaur.reading.ac.uk/id/eprint/124810
Identification Number/DOI	10.1007/s10479-024-05924-7
Refereed	Yes
Divisions	Henley Business School > Finance and Accounting
Publisher	Springer
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