Contribution of Rural Banks to Regional Economic Development: Evidence from the Philippines
University of Limoges - Laboratoire d'Analyse et de Prospectives Économiques (LAPE)
Université de Limoges, LAPE
University of Limoges - Faculty of Law and Economic Science
September 2, 2010
Regional Studies, Forthcoming
This paper examines the link between banking and economic development at the regional level in the Philippines and focuses on the role played by rural banks on economic activity. A cointegration panel data analysis is applied for the sixteen Philippine regions from 1993 to 2005. When using indicators built at the regional banking industry level, there is no clear-cut evidence of a banking-led economic development. But, we find a consistent positive effect of the presence of rural banks on regional economic development for the intermediate and less developed regions, with a stronger effect for the former, suggesting a threshold effect.
Number of Pages in PDF File: 34
Keywords: Banking development, Regional economic development, Banking structure, Panel cointegration, Rural banks
JEL Classification: C23, G21, O16working papers series
Date posted: September 3, 2010
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