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dc.contributor.authorÖnder, Z.en_US
dc.contributor.authorÖzyıldırım, S.en_US
dc.date.accessioned2015-07-28T12:04:34Z
dc.date.available2015-07-28T12:04:34Z
dc.date.issued2013-04en_US
dc.identifier.issn1572-3089
dc.identifier.urihttp://hdl.handle.net/11693/13083
dc.description.abstractAlthough state-owned banks are expected to promote the growth of less-developed regions, especially in developing economies, several cross-country studies report that lending by state banks is associated with the inefficient allocation of credit and low levels of development. Further, state banks have been found to lend to their cronies, especially around elections. In this paper, we study the lending activities of stateowned and private banks during the period 1992–2010 and analyze the relationship between the credit these banks provide and local economic growth in Turkey during crisis periods and in election years. We find that the share of state-owned banks in the credit market in crisis periods and local election years is significantly higher than their share in non-crisis and non-election periods. The per capita real credit that state-owned banks provide during crisis years is found to be positively associated with local growth in all provinces. Our results suggest that although state-owned banks might issue loans for political reasons in election periods, they also seem to play an important role in offsetting the adverse effects of economic shocks, especially in developed provinces.en_US
dc.language.isoEnglishen_US
dc.source.titleJournal of Financial Stabilityen_US
dc.relation.isversionofhttp://dx.doi.org/10.1016/j.jfs.2012.12.002en_US
dc.subjectState-owned banksen_US
dc.subjectBank crediten_US
dc.subjectLocal growthen_US
dc.subjectCrisis electionen_US
dc.titleRole of bank credit on local growth: do politics and crisis matter?en_US
dc.typeArticleen_US
dc.departmentDepartment of Managementen_US
dc.citation.spage13en_US
dc.citation.epage25en_US
dc.citation.volumeNumber9en_US
dc.citation.issueNumber1en_US
dc.identifier.doi10.1016/j.jfs.2012.12.002en_US
dc.publisherElsevieren_US


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