What Have We Learned about National Development Banks? Evidence from Brazil

ABSTRACT There are 553 development banks in the world: 18% of these institutions have emerged since the 2008 financial crisis. There is a large theoretical literature on such institutions, but the evidence on their effectiveness is scattered. This paper provides a systematic review of causal effect...

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Bibliographic Details
Published in:Brazilian Journal of Political Economy 2023-07, Vol.43 (3), p.646-669
Main Authors: BARBOZA, RICARDO, PESSOA, SAMUEL, ROITMAN, FÁBIO, RIBEIRO, EDUARDO PONTUAL
Format: Article
Language:English
Subjects:
Banking
BNDES
Climate change
Deforestation
Development banks
Economic crisis
Economic development
Economic growth
Employment
Financial institutions
Loans
Political power
Productivity
state-owned banks
systematic review
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Summary:ABSTRACT There are 553 development banks in the world: 18% of these institutions have emerged since the 2008 financial crisis. There is a large theoretical literature on such institutions, but the evidence on their effectiveness is scattered. This paper provides a systematic review of causal effect studies of one of the largest and most representative development banks in the world, the Brazilian Development Bank (BNDES). We review 48 academic papers that estimate BNDES loans and credit programs impact in several policy dimensions. In general, the evidence indicates that development banks can be an effective instrument to increase investment, exports, employment and GDP, particularly when borrowers are micro, small and medium-sized companies. The Brazilian experience also suggests that development banks can be an important tool to fight against climate change, reducing deforestation. On the other hand, evidence indicates that the greatest difficulty for these institutions is to generate positive impacts on productivity, an essential variable for economic growth. Finally, the evidence is inconclusive on political influence on development bank’s loans. RESUMO Existem 553 bancos de desenvolvimento no mundo: 18% dessas instituições surgiram desde a crise financeira de 2008. Existe uma vasta literatura teórica sobre tais instituições, mas as evidências sobre sua eficácia são dispersas. Este artigo fornece uma revisão sistemática dos estudos de efeito causal de um dos maiores e mais representativos bancos de desenvolvimento do mundo, o Banco Nacional de Desenvolvimento Econômico e Social (BNDES). Analisamos 48 trabalhos acadêmicos que estimam o impacto dos empréstimos e programas de crédito do BNDES em várias dimensões de políticas. Em geral, as evidências indicam que os bancos de desenvolvimento podem ser um instrumento eficaz para aumentar o investimento, as exportações, o emprego e o PIB, principalmente quando os tomadores de empréstimo são micro, pequenas e médias empresas. A experiência brasileira também sugere que os bancos de desenvolvimento podem ser uma importante ferramenta de combate às mudanças climáticas, reduzindo o desmatamento. Por outro lado, evidências indicam que a maior dificuldade dessas instituições é gerar impactos positivos na produtividade, variável essencial para o crescimento econômico. Finalmente, as evidências são inconclusivas sobre a influência política nos empréstimos do banco de desenvolvimento.
ISSN:0101-3157
1809-4538
DOI:10.1590/0101-31572023-3467