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Contribution of Rural Banks to Regional Economic Development: Evidence from the Philippines

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  • C�line Meslier-Crouzille
  • Emmanuelle Nys
  • Alain Sauviat

Abstract

Meslier-Crouzille C., Nys E. and Sauviat A. Contribution of rural banks to regional economic development: evidence from the Philippines, Regional Studies . The paper examines the link between banking and economic development in the Philippine regions and it focuses on the role of rural banks using a co-integration panel data analysis (1993--2005). No clear-cut evidence is found of a positive influence of banking development measured by traditional indicators built at the regional level for the whole banking industry. However, a consistent positive effect of rural banks is found in the intermediate and less-developed regions, with a stronger effect for the former, suggesting a threshold effect. Estimations on rolling subsamples confirm the differentiated impact of rural banks depending on the stage of regional development. Meslier-Crouzille C., Nys E. et Sauviat A. La contribution des banques rurales à l'am�nagement du territoire, Regional Studies . Cet article cherche à examiner le rapport entre le secteur bancaire et l'am�nagement du territoire dans les r�gions aux Philippines et, à partir d'une analyse coint�gr�e par enquête à �chantillon constant (de 1993 à 2005), à focaliser le rôle des banques rurales. Il ne s'avère aucune preuve incontestable de l'influence positive du d�veloppement du secteur bancaire, mesur� en termes des indicateurs classiques �tablis au niveau r�gional pour tout le secteur bancaire. Cependant, il s'avère un effet positif constant des banques rurales dans les r�gions interm�diaires ou moins d�velopp�es, dont l'impact est plus fort dans celles-là, ce qui laisse supposer un effet de seuil. Des estimations des sous-�chantillons continus confirment les impacts diff�renci�s des banques rurales en fonction de la phase de l'am�nagement du territoire en cours. D�veloppement bancaire Am�nagement du territoire Structure bancaire Enquête coint�gr�e Banques rurales Meslier-Crouzille C., Nys E. und Sauviat A. Der Beitrag von Banken in ländlichen Gebieten zur regionalen Wirtschaftsentwicklung: Belege aus den Philippinen, Regional Studies . In diesem Beitrag untersuchen wir den Zusammenhang zwischen der Entwicklung des Bankwesens und der Wirtschaft in den Regionen der Philippinen unter besonderer Berücksichtigung der Rolle von Banken in ländlichen Gebieten. Hierfür kommt eine Analyse von kointegrierten Paneldaten (1993--2005) zum Einsatz. Bei einer Messung mit traditionellen Indikatoren, die auf regionaler Ebene für die gesamte Bankbranche entwickelt wurden, liegen keine klaren Belege für einen positiven Einfluss der Entwicklung des Bankwesens vor. Allerdings findet sich in den intermediären und weniger entwickelten Regionen ein konsistent positiver Effekt der Banken in ländlichen Gebieten, wobei der Effekt in den intermediären Regionen stärker ausfällt, was auf eine Schwellenwirkung schließen lässt. Die differenzierte Auswirkung der Banken in ländlichen Gebieten je nach dem Stadium der regionalen Entwicklung wird durch wiederholte Querschnittsschätzungen bestätigt. Entwicklung des Bankwesens Regionale Wirtschaftsentwicklung Struktur des Bankwesens Panel-Kointegration Banken in ländlichen Gebieten Meslier-Crouzille C., Nys E. y Sauviat A. Contribución de los bancos rurales en el desarrollo económico regional: evidencia de las Filipinas, Regional Studies . Mediante un análisis de datos de panel cointegrados (1993--2005), en este art�culo analizamos el v�nculo entre el desarrollo bancario y el desarrollo económico en las regiones de las Filipinas centrándonos en el papel de los bancos rurales. Tras una medición con indicadores tradicionales que se han desarrollado a nivel regional para todo el sector bancario, no hemos hallado pruebas claras de que el desarrollo bancario ejerza una influencia positiva. Sin embargo, observamos un efecto positivo constante de los bancos rurales en las regiones con desarrollo intermedio y bajo, si bien el efecto es más fuerte en las regiones intermedias, lo que indica un efecto umbral. Las estimaciones en las submuestras continuas confirman el impacto diferenciado de los bancos rurales según la fase del desarrollo regional. Desarrollo bancario Desarrollo económico regional Estructura bancaria Cointegración de panel Bancos rurales

Suggested Citation

  • C�line Meslier-Crouzille & Emmanuelle Nys & Alain Sauviat, 2012. "Contribution of Rural Banks to Regional Economic Development: Evidence from the Philippines," Regional Studies, Taylor & Francis Journals, vol. 46(6), pages 775-791, June.
    • Handle: RePEc:taf:regstd:v:46:y:2012:i:6:p:775-791
    DOI: 10.1080/00343404.2010.529117
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    1. Mr. Giovanni Favara, 2003. "An Empirical Reassessment of the Relationship Between Finance and Growth," IMF Working Papers 2003/123, International Monetary Fund.
    2. Kendall, Jake, 2012. "Local financial development and growth," Journal of Banking & Finance, Elsevier, vol. 36(5), pages 1548-1562.
    3. Peter L. Rousseau & Paul Wachtel, 2005. "Economic Growth and Financial Depth: Is the Relationship Extinct Already?," Working Papers 05-15, New York University, Leonard N. Stern School of Business, Department of Economics.
    4. Robin Burgess & Rohini Pande, 2005. "Do Rural Banks Matter? Evidence from the Indian Social Banking Experiment," American Economic Review, American Economic Association, vol. 95(3), pages 780-795, June.
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    Cited by:

    1. Laurent Augier & Wahyoe Soedarmono, 2011. "Threshold Effect and Financial Intermediation in Economic Development," Economics Bulletin, AccessEcon, vol. 31(1), pages 342-357.
    2. Wahyoe Soedarmono & Iftekhar Hasan & Nuruzzaman Arsyad, 2017. "Non-linearity in the finance-growth nexus: Evidence from Indonesia," International Economics, CEPII research center, issue 150, pages 19-35.
    3. Yudistira Hendra Permana & Ike Yuli Andjani, 2014. "Financial efficiency performance of regional development bank (RDB) to support regional economy in Indonesia," International Journal of Economic Sciences, Prague University of Economics and Business, vol. 2014(4), pages 53-69.
    4. Francesco Aiello & Graziella Bonanno, 2018. "Multilevel empirics for small banks in local markets," Papers in Regional Science, Wiley Blackwell, vol. 97(4), pages 1017-1037, November.
    5. Rufo MENDOZA & John Paolo R. RIVERA, 2017. "The Effect Of Credit Risk And Capital Adequacy On The Profitability Of Rural Banks In The Philippines," Scientific Annals of Economics and Business (continues Analele Stiintifice), Alexandru Ioan Cuza University, Faculty of Economics and Business Administration, vol. 64(1), pages 83-96, March.
    6. Tahiru Azaaviele Liedong & Daniel Aghanya & Tazeeb Rajwani, 2020. "Corporate Political Strategies in Weak Institutional Environments: A Break from Conventions," Journal of Business Ethics, Springer, vol. 161(4), pages 855-876, February.
    7. Jessica Los Banos & Céline Meslier-Crouzille & Emmanuelle Nys & Alain Sauviat, 2011. "Banking industry structure and economics activities: A regional approach for the Philippines," Post-Print hal-00785483, HAL.
    8. Soedarmono, Wahyoe & Trinugroho, Irwan & Sergi, Bruno S., 2019. "Thresholds in the nexus between financial deepening and firm performance: Evidence from Indonesia," Global Finance Journal, Elsevier, vol. 40(C), pages 1-12.

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