IDEAS home Printed from https://ideas.repec.org/a/oup/cjrecs/v10y2017i1p189-204..html
   My bibliography  Save this article

The structure of state borrowing: towards a political theory of control mechanisms

Author

Listed:
  • Anush Kapadia

Abstract

Alice Amsden’s seminal work on the developmental state was premised on a general theory of control mechanisms. Her focus on development banking prioritises financial control. However, the development literature concentrates on one element of financial control: investments rather than borrowing. Further, a state bank makes borrowing bargains that are fundamentally political. Building on recent work on “political settlements” and development, we propose a political theory of control mechanisms that builds politics into Amsden’s theory of control. We then apply it to development bank fundraising, arguing that when development banking works, it does so by reconciling political settlements with control over fundraising.

Suggested Citation

  • Anush Kapadia, 2017. "The structure of state borrowing: towards a political theory of control mechanisms," Cambridge Journal of Regions, Economy and Society, Cambridge Political Economy Society, vol. 10(1), pages 189-204.
    • Handle: RePEc:oup:cjrecs:v:10:y:2017:i:1:p:189-204.
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1093/cjres/rsw036
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Mariana Mazzucato & Caetano C.R. Penna, 2016. "Beyond market failures: the market creating and shaping roles of state investment banks," Journal of Economic Policy Reform, Taylor and Francis Journals, vol. 19(4), pages 305-326, October.
    2. Dani Rodrik & Arvind Subramanian, 2005. "From "Hindu Growth" to Productivity Surge: The Mystery of the Indian Growth Transition," IMF Staff Papers, Palgrave Macmillan, vol. 52(2), pages 193-228, September.
    3. Acemoglu, Daron & Johnson, Simon & Robinson, James A., 2005. "Institutions as a Fundamental Cause of Long-Run Growth," Handbook of Economic Growth, in: Philippe Aghion & Steven Durlauf (ed.), Handbook of Economic Growth, edition 1, volume 1, chapter 6, pages 385-472, Elsevier.
    4. North,Douglass C. & Wallis,John Joseph & Weingast,Barry R., 2013. "Violence and Social Orders," Cambridge Books, Cambridge University Press, number 9781107646995, January.
    5. Levine, Ross, 2005. "Finance and Growth: Theory and Evidence," Handbook of Economic Growth, in: Philippe Aghion & Steven Durlauf (ed.), Handbook of Economic Growth, edition 1, volume 1, chapter 12, pages 865-934, Elsevier.
    6. Kapadia, Anush, 2013. "Europe and the logic of hierarchy," Journal of Comparative Economics, Elsevier, vol. 41(2), pages 436-446.
    7. Stasavage,David, 2003. "Public Debt and the Birth of the Democratic State," Cambridge Books, Cambridge University Press, number 9780521809672, November.
    8. Shyam Sunder & MODELS A, 2002. "Markets as Artifacts: Aggregate Efficiency from Zero-Intelligence Traders," Yale School of Management Working Papers ysm284, Yale School of Management, revised 01 Sep 2004.
    9. Mariana Mazzucato & Caetano C.R. Penna, 2016. "Beyond market failures: the market creating and shaping roles of state investment banks," Journal of Economic Policy Reform, Taylor & Francis Journals, vol. 19(4), pages 305-326, October.
    10. Sen, Kunal, 2013. "The Political Dynamics of Economic Growth," World Development, Elsevier, vol. 47(C), pages 71-86.
    11. Hickey, Sam & Sen, Kunal & Bukenya, Badru (ed.), 2014. "The Politics of Inclusive Development: Interrogating the Evidence," OUP Catalogue, Oxford University Press, number 9780198722564.
    12. Philippe Aghion, 2005. "Growth and Institutions," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 32(1), pages 3-18, March.
    13. Philippe Aghion & Steven Durlauf (ed.), 2005. "Handbook of Economic Growth," Handbook of Economic Growth, Elsevier, edition 1, volume 1, number 1.
    Full references (including those not matched with items on IDEAS)

    Citations

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


    Cited by:

    1. Judith Clifton & Amy Glasmeier & Alpen Sheth, 2017. "Revisiting development theory: Alice H. Amsden’s impact on the field," Cambridge Journal of Regions, Economy and Society, Cambridge Political Economy Society, vol. 10(1), pages 3-14.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Kunal Sen, 2014. "Inclusive Growth: When May We Expect It? When May We Not?," Asian Development Review, MIT Press, vol. 31(1), pages 136-162, March.
    2. Maiorano, F. & Stern, J., 2007. "Institutions and investment in low and middle-income countries: the case of mobile communications," Working Papers 07/06, Department of Economics, City University London.
    3. Jean-Pierre Allegret & Sana Azzabi, 2014. "Intégration financière internationale et croissance économique dans les pays émergents et en développement : le canal du développement financier," Revue d’économie du développement, De Boeck Université, vol. 22(3), pages 27-68.
    4. Capolupo, Rosa, 2009. "The New Growth Theories and Their Empirics after Twenty Years," Economics - The Open-Access, Open-Assessment E-Journal (2007-2020), Kiel Institute for the World Economy (IfW Kiel), vol. 3, pages 1-72.
    5. Maiorano, Federica & Stern, Jon, 2007. "Institutions and telecommunications infrastructure in low and middle-income countries: The case of mobile telephony," Utilities Policy, Elsevier, vol. 15(3), pages 165-181, September.
    6. Wafa Ghardallou & Dorsaf Sridi, 2020. "Democracy and Economic Growth: a Literature Review," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 11(3), pages 982-1002, September.
    7. James B. Ang & Jakob B. Madsen, 2012. "Risk capital, private credit, and innovative production," Canadian Journal of Economics, Canadian Economics Association, vol. 45(4), pages 1608-1639, November.
    8. Imam, Patrick & Kpodar, Kangni, 2016. "Islamic banking: Good for growth?," Economic Modelling, Elsevier, vol. 59(C), pages 387-401.
    9. Eric C. Edwards & Martin Fiszbein & Gary D. Libecap, 2022. "Property Rights to Land and Agricultural Organization: An Argentina–United States Comparison," Journal of Law and Economics, University of Chicago Press, vol. 65(S1), pages 1-33.
    10. Abdullahi Ahmed & Andrew Hulten, 2014. "Financial Globalization in Botswana and Nigeria: A Critique of the Thresholds Paradigm," The Review of Black Political Economy, Springer;National Economic Association, vol. 41(2), pages 177-203, June.
    11. Aniruddha Mitra & James Bang & Phanindra Wunnava, 2014. "Financial liberalization and the selection of emigrants: a cross-national analysis," Empirical Economics, Springer, vol. 47(1), pages 199-226, August.
    12. Noort, S., 2018. "The Importance of E ective States: State Capacity and Economic Development," Cambridge Working Papers in Economics 1821, Faculty of Economics, University of Cambridge.
    13. Harris,Colin & Cai,Meina & Murtazashvili,Ilia & Murtazashvili,Jennifer Brick, 2020. "The Origins and Consequences of Property Rights," Cambridge Books, Cambridge University Press, number 9781108969055, November.
    14. Nurullah Gur, 2015. "Trust and the wealth of nations," Progress in Development Studies, , vol. 15(2), pages 107-124, April.
    15. Mitra, Aniruddha & Bang, James T. & Wunnava, Phanindra V., 2011. "Financial Liberalization and the Brain Drain: A Panel Data Analysis," IZA Discussion Papers 5953, Institute of Labor Economics (IZA).
    16. Ferraz, João Carlos & Coutinho, Luciano, 2019. "Investment policies, development finance and economic transformation: Lessons from BNDES," Structural Change and Economic Dynamics, Elsevier, vol. 48(C), pages 86-102.
    17. Chen, Binkai & Lin, Justin Yifu, 2021. "Development strategy, resource misallocation and economic performance," Structural Change and Economic Dynamics, Elsevier, vol. 59(C), pages 612-634.
    18. Charles D. Brummitt & Kenan Huremović & Paolo Pin & Matthew H. Bonds & Fernando Vega-Redondo, 2017. "Contagious disruptions and complexity traps in economic development," Nature Human Behaviour, Nature, vol. 1(9), pages 665-672, September.
    19. Braunfels, Elias, 2016. "Further Unbundling Institutions," Discussion Paper Series in Economics 13/2016, Norwegian School of Economics, Department of Economics.
    20. Rosa Bernardini Papalia & Silvia Bertarelli, 2013. "Nonlinearities in economic growth and club convergence," Empirical Economics, Springer, vol. 44(3), pages 1171-1202, June.

    More about this item

    Keywords

    political economy of development; finance and politics; finance and development; control mechanisms; political settlements; economic history;
    All these keywords.

    JEL classification:

    • N2 - Economic History - - Financial Markets and Institutions
    • H6 - Public Economics - - National Budget, Deficit, and Debt
    • P16 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Capitalist Institutions; Welfare State
    • O23 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Fiscal and Monetary Policy in Development

    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:oup:cjrecs:v:10:y:2017:i:1:p:189-204.. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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: Oxford University Press (email available below). General contact details of provider: https://academic.oup.com/cjres .

    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.