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

Céline Meslier-Crouzille (1) , Emmanuelle Nys (1) , Alain Sauviat (1)

1 LAPE - Laboratoire d'Analyse et de Prospective Economique

We examine the link between banking and economic development in the Philippine regions and focus on the role of rural banks using a cointegration panel data analysis (1993 - 2005). We find no clear-cut evidence of a positive influence of banking development measured by traditional indicators built at the regional level for the whole banking industry. But, we find a consistent positive effect of rural banks in the intermediate and less developed regions, with a stronger effect for the former, suggesting a threshold effect. Estimations on rolling sub-samples confirm the differentiated impact of rural banks depending on the stage of regional development.

Mots clés: Social Sciences & Humanities

Céline Meslier-Crouzille, Emmanuelle Nys, Alain Sauviat. Contribution of Rural Banks to Regional Economic Development: Evidence from the Philippines. Regional Studies, 2011, pp.1. ⟨10.1080/00343404.2010.529117⟩. ⟨hal-00658167⟩