This article aims to show that development banks make a positive effect to economic growth and to generate employment, mostly. It is specifically shown the Brazilian case, with its development bank BNDES founded in 1952. In doing this, we use statistical as well as historical tools. Our findings indicate that: 1) BNDES’ disbursements had an important contribution to industrialization from 1952 until 1970s, and 3) statistical evidence showed that BNDES’ disbursements are related to investment in machinery and equipment.
- Written by Victor Isidoro Luna