Oil Abundance, National Oil Companies, and Financial Repression

DOI:  https://doi.org/10.12804/revistas.urosario.edu.co/economia/a.15770

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Published: Apr 15, 2026
Issue: Vol. 28 No. 1 (2025):
Section Articles


Keywords: Financial repression national oil companies credit

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Authors

  Roberto Pérez Becerra
Universidad del Rosario

Abstract

This paper examines whether state ownership in the oil sector conditions the resource–finance nexus. Using a panel of 90 countries from 1973 to 2017 and estimating dynamic models with the system GMM estimator, we analyze how oil abundance interacts with the presence of a national oil company (NOC) to shape financial development. We provide a new explanation for the adoption of interest rate controls (IRC), showing that fiscal dependence on oil revenues, when coupled with NOC, is systematically associated with financial repression. A mediation analysis reveals an indirect channel in which IRC stimulates credit growth in the short run but wea kens banking depth over time. These findings build on the classic insights of McKinnon and Shaw, as well as on more recent work by Reinhart, while offering a novel mechanism that endogenizes governments’ decisions to repress finance.

How to Cite
Pérez Becerra, R. (2026). Oil Abundance, National Oil Companies, and Financial Repression. Revista Economía Del Rosario, 28(1). https://doi.org/10.12804/revistas.urosario.edu.co/economia/a.15770
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