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European development banks and the political cycle

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  • Frigerio, Marco
  • Vandone, Daniela

Abstract

This paper investigates whether the lending activity of European development banks is affected by opportunistic political behavior, by looking at the change in loans extended by these entities in election years. The empirical analysis leverages on a unique manually collected dataset that includes all the development banks headquartered in Europe, for the period 2002–2015.

Suggested Citation

  • Frigerio, Marco & Vandone, Daniela, 2020. "European development banks and the political cycle," European Journal of Political Economy, Elsevier, vol. 62(C).
    • Handle: RePEc:eee:poleco:v:62:y:2020:i:c:s0176268019305051
    DOI: 10.1016/j.ejpoleco.2019.101852
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    Cited by:

    1. Clò, Stefano & Frigerio, Marco & Vandone, Daniela, 2022. "Financial support to innovation: The role of European development financial institutions," Research Policy, Elsevier, vol. 51(10).
    2. Léon, Florian, 2023. "Public bank lending in Africa in times of crisis," Emerging Markets Review, Elsevier, vol. 55(C).
    3. Degl’Innocenti, Marta & Frigerio, Marco & Zhou, Si, 2022. "Development banks and the syndicate structure: Evidence from a world sample," Journal of Empirical Finance, Elsevier, vol. 66(C), pages 99-120.
    4. Sithole, Mixo Sweetness & Hlongwane, Nyiko Worship, 2023. "The role of the New Development Bank on Economic growth and Development in the BRICS states," MPRA Paper 119958, University Library of Munich, Germany, revised 26 Jan 2024.
    5. Laurent Wagner, 2020. "The allocation of resources of national development banks: Does it fit development goals?," Working Papers hal-02988377, HAL.
    6. Laurent WAGNER, 2020. "The allocation of resources of national development banks," Working Paper 9c3d4298-95e5-4561-a9cb-5, Agence française de développement.
    7. Gong, Di & Xu, Jiajun & Yan, Jianye, 2023. "National development banks and loan contract terms: Evidence from syndicated loans," Journal of International Money and Finance, Elsevier, vol. 130(C).

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    More about this item

    Keywords

    Development banking; Ownership; Lending; Political interference; Political business cycle; JEL codes; O16; L32; G21; D72; G28;
    All these keywords.

    JEL classification:

    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
    • L32 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Public Enterprises; Public-Private Enterprises
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation

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