La Porta, Lopez-de-Silanes, and Shleifer (2002) examine government ownership of banks in 92 countries. They find that government ownership of banks is widespread, particularly in countries with low per capita income, underdeveloped financial systems, and poor property rights protection. They also find that government ownership of banks is associated with slower financial development and lower productivity growth, contradicting the optimistic "development" theories of government bank ownership from the 1960s. Instead, their findings support the "political" view that government ownership of banks leads to inefficient resource allocation and reduced economic growth. The authors argue that government ownership of banks is more common in countries with less developed institutions and that it tends to hinder financial development and productivity growth. They also find that government ownership of banks is associated with lower economic growth and lower productivity growth, rather than slower factor accumulation. The study concludes that government ownership of banks is generally detrimental to economic development, particularly in less developed countries.La Porta, Lopez-de-Silanes, and Shleifer (2002) examine government ownership of banks in 92 countries. They find that government ownership of banks is widespread, particularly in countries with low per capita income, underdeveloped financial systems, and poor property rights protection. They also find that government ownership of banks is associated with slower financial development and lower productivity growth, contradicting the optimistic "development" theories of government bank ownership from the 1960s. Instead, their findings support the "political" view that government ownership of banks leads to inefficient resource allocation and reduced economic growth. The authors argue that government ownership of banks is more common in countries with less developed institutions and that it tends to hinder financial development and productivity growth. They also find that government ownership of banks is associated with lower economic growth and lower productivity growth, rather than slower factor accumulation. The study concludes that government ownership of banks is generally detrimental to economic development, particularly in less developed countries.