IDEAS home Printed from https://ideas.repec.org/a/bla/revurb/v30y2018i1p66-87.html
   My bibliography  Save this article

Do Public Sector Banks Promote Regional Growth? Evidence From An Emerging Economy

Author

Listed:
  • Rashmi Umesh Arora
  • Kifle Wondemu

Abstract

A large literature exists on the relationship between financial development and economic growth. However, the role of government and public banks in building this relationship has remained contentious. In a sub†national level analysis in the Indian context, we raise the question: What is the relative impact of public banks in economic growth in the lagging regions vis†à †vis leading regions? Do they matter more than private and foreign banks? To address these problems, we apply a dynamic generalized method of moments panel estimation to an unbalanced panel dataset drawn from 25 Indian states covering the period 1996/97 to 2008/09. Although our study focuses on the Indian context, it is relevant to developing countries for two main reasons: government ownership of banks is prevalent in developing countries; and in many large countries with a federation set†up inter†state differences may exist with multiple ownership of the financial sector.

Suggested Citation

  • Rashmi Umesh Arora & Kifle Wondemu, 2018. "Do Public Sector Banks Promote Regional Growth? Evidence From An Emerging Economy," Review of Urban & Regional Development Studies, Wiley Blackwell, vol. 30(1), pages 66-87, March.
    • Handle: RePEc:bla:revurb:v:30:y:2018:i:1:p:66-87
    DOI: 10.1111/rurd.12076
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/rurd.12076
    Download Restriction: no
    File URL: https://libkey.io/10.1111/rurd.12076?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Mrutyunjaya SAHOO & Praveen SAHU, 2023. "Does the effectiveness of money supply and foreign direct investment determine the industrial growth performance in India?," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania - AGER, vol. 0(2(635), S), pages 83-102, Summer.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:revurb:v:30:y:2018:i:1:p:66-87. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://www.blackwellpublishing.com/journal.asp?ref=0917-0553 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.