Influence of State Banks on Economic Growth: A Cross-Country Analysis

Abstract

The authors systematize the economic-mathematical models, as well as the results of empirical studies of authoritative international analytical agencies and financial institutions, in which the influence of state capital in the banking system on the development of national economies was formalized on different countries in different periods. The analysis showed that such studies often give some completely opposite results. The reason for these authors is that the sample of countries in these models is formed mainly taking into account differences in the scale of state participation and levels of economic development of countries. This approach is erroneous because it does not take into account the specifics of the construction of the financial sector in these countries and the functions performed by the state banks.