What do state-owned development banks do? Evidence from BNDES, 2002-09

Resumo

Defendants of state-owned development banks emphasize their role in reducing capital constraints and fostering productive investment; detractors point out that they may benefit politically connected capitalists or bail out inefficient firms. We study the effect of loans and equity investments of the Brazilian National Development Bank (BNDES) and find that they do not have any consistent effect on firm-level performance and investment, except for a reduction in financial 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.

Ficha do documento

Tipo

Artigo científico

Ano

2014

Instituição

Elsevier Ltd

Fonte

Repositório da FGV

Idioma

Inglês

Acesso

Acesso aberto

DOI

10.1016/j.worlddev.2014.08.016

Identificador

oai:repositorio.fgv.br:10438/25432

Temas

EconomiaDesenvolvimento Econômico

Palavras-chave

BNDESDevelopment banksIndustrial policyPolitical connectionsState-owned banksBankingCapital formationExpenditureIndustrial performanceInvestmentLending behaviorState-owned enterprisesBrazilBancos de desenvolvimentoPerformance industrialEmpresas estataisFinançasBancos de desenvolvimento - BrasilBanco Nacional de Desenvolvimento Econômico e Social (Brasil)