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

Regional Studies, 2012, 46(6), 775-91

34 Pages Posted: 3 Sep 2010 Last revised: 21 Dec 2013

See all articles by Celine Meslier-Crouzille

Celine Meslier-Crouzille

University of Limoges - Laboratoire d'Analyse et de Prospectives Économiques (LAPE)

Emmanuelle Nys

Université de Limoges, LAPE

Alain Sauviat

Université de Limoges, LAPE

Abstract

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.

Keywords: Banking development, Regional economic development, Banking structure, Panel cointegration, Rural banks

JEL Classification: C23, G21, O16

Suggested Citation

Meslier-Crouzille, Celine and Nys, Emmanuelle and Sauviat, Alain, Contribution of Rural Banks to Regional Economic Development: Evidence from the Philippines. Regional Studies, 2012, 46(6), 775-91, Available at SSRN: https://ssrn.com/abstract=1670602 or http://dx.doi.org/10.2139/ssrn.1670602

Celine Meslier-Crouzille

University of Limoges - Laboratoire d'Analyse et de Prospectives Économiques (LAPE) ( email )

5 rue Félix Eboué
BP 3127
Limoges Cedex 1, 87031
France

Emmanuelle Nys (Contact Author)

Université de Limoges, LAPE ( email )

5 rue Félix Eboué
BP 3127
Limoges Cedex 1, 87031
France

Alain Sauviat

Université de Limoges, LAPE ( email )

5 rue Félix Eboué BP3127
LIMOGES, 87031
France

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