Political Intrusion on Firms: Effects of Elections on Bank Lending in India

<p>This paper examines the intrusion of political system on performance of Indian firms, employing state and constituency level financial borrowing panel data by firms from domestic banks from 2010 to 2015. Using conditional logistic and fixed effects regression models, the results suggests that firms located in regions aligned politically with the ruling party enjoy possible preferential access to financing from banks. We find average productivity efficiency loss of 2.77% in the short term as a result of politically motivated redistribution of scarce capital. These political effects are statistically robust to the inclusion of region fixed effects, time fixed effects and other socio-economic factors.</p>

Name thesis:degree_name

Master of Science in International and Development Economics (MSIDEC)

Level thesis:degree_level

Thesis

Discipline thesis:degree_discipline

Economics

Year dc:date.available

2017

Author dc:creator

• Gunjal, Shivprasad Prabhakar

Contributors dc:contributor

• Suparna Chakraborty
• Michael Jonas

• Political Economy
• Politically Motivated Redistribution
• Political Alliance

Repository record dc:identifier

https://repository.usfca.edu/thes/239

OAI identifier oai:identifier

oai:repository.usfca.edu:thes-1301