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ResearchPaper
2017

Savings banks and the industrial revolution in Prussia : supporting regional development with public financial institutions

Abstract (English)

We show that smaller, regional public financial intermediaries significantly contributed to industrial development, using a new data set of the foundation year and location of Prussian savings banks. This extends the banking-growth nexus beyond its traditional focus on the large universal banks, to savings banks. The saving banks had an impact through the financing of public infrastructure, such as railways, and new private factories. Saving banks were public financial intermediaries, so our results strongly suggest that state intervention can be very successful, particularly in regions in the early stages of industrial development when capital requirements are manageable, and access to international capital markets is limited.

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Publication license

Publication series

Hohenheim discussion papers in business, economics and social sciences; 2017,18

Published in

Faculty
Faculty of Business, Economics and Social Sciences
Institute
Institute of Economics

Examination date

Supervisor

Edition / version

Citation

DOI

ISSN

ISBN

Language
English

Publisher

Publisher place

Classification (DDC)
330 Economics

Original object

Sustainable Development Goals

BibTeX

@techreport{Wahl2017, url = {https://hohpublica.uni-hohenheim.de/handle/123456789/6173}, author = {Wahl, Fabian and Lehmann-Hasemeyer, Sibylle}, title = {Savings banks and the industrial revolution in Prussia : supporting regional development with public financial institutions}, year = {2017}, school = {Universität Hohenheim}, series = {Hohenheim discussion papers in business, economics and social sciences}, }
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