IDEAS home Printed from https://ideas.repec.org/a/ers/journl/vxxivy2021i3-part1p590-614.html
   My bibliography  Save this article

Activity of Regional Microfinance Institutions in Terms of Regional Development

Author

Listed:
  • Przemyslaw Pluskota

Abstract

Purpose: The aim of the article is to analyse the activity of two types of microfinance institutions in Poland, loan funds and loan guarantee funds and to indicate the relations between their activity and the condition of the regions. Design/Methodology/Approach: To analyse funds activity we have employed a methodological approach of comparative analysis based on data from Eurostat, Local Data Bank, European Microfinanse Network, Polish Association of Loan Funds and Polish Association of Guarantee Funds. Data used in the study included 2012- 2018 years. In order to evaluate the impact of the funds on the region’s development, the study applied Pearson's correlation analysis, linear regression analysis, and single-factor variance analysis. Findings: The results indicate that the collective analysis of operations run by both types of institutions has shown numerous negative correlations, whereas the analysis of the impacts of the funds in the individual voivodeships has shown positive outcomes. It can therefore be stated that the activity of loan funds and guarantee funds on the regional scale displays positive effects and relationships, which differ depending on the region. Practical Implications: Both funds and their owners have to search for new solutions and ways of development. This regards especially the guarantee funds which must compete with national guarantee programmes, which decreases their role from the point of view of commercial banks. Originality/Value: The research study is an original analysis of the impact of regional financial institutions on regional development. It indicated a need for the institutions to change their strategies. In order to increase their impact on the region, the owners (which are mainly self-governmental bodies) should consider recapitalisation while retaining their regional character.

Suggested Citation

  • Przemyslaw Pluskota, 2021. "Activity of Regional Microfinance Institutions in Terms of Regional Development," European Research Studies Journal, European Research Studies Journal, vol. 0(3 - Part ), pages 590-614.
    • Handle: RePEc:ers:journl:v:xxiv:y:2021:i:3-part1:p:590-614
    as

    Download full text from publisher

    File URL: https://ersj.eu/journal/2373/download
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Hasan, Iftekhar & Jackowicz, Krzysztof & Kowalewski, Oskar & Kozłowski, Łukasz, 2017. "Do local banking market structures matter for SME financing and performance? New evidence from an emerging economy," Journal of Banking & Finance, Elsevier, vol. 79(C), pages 142-158.
    2. Robert Lensink & Roy Mersland & Nhung Thi Hong Vu & Stephen Zamore, 2018. "Do microfinance institutions benefit from integrating financial and nonfinancial services?," Applied Economics, Taylor & Francis Journals, vol. 50(21), pages 2386-2401, May.
    3. Luintel, Kul B. & Khan, Mosahid & Leon-Gonzalez, Roberto & Li, Guangjie, 2016. "Financial development, structure and growth: New data, method and results," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 43(C), pages 95-112.
    4. Lawal Adedoyin Isola & Omoluabi Ehis Taiwo & Ahmed Victor & Babalola Kehinde Leke, 2014. "An Enquiry into the Contributions of Microfinance Institutions Towards the Development of Small Scale Business in Nigeria," International Journal of Business, Economics and Management, Conscientia Beam, vol. 1(6), pages 88-100.
    5. repec:cdl:ucscec:qt9z21r44x is not listed on IDEAS
    6. Valerie R. Bencivenga & Bruce D. Smith, 1991. "Financial Intermediation and Endogenous Growth," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 58(2), pages 195-209.
    7. Lawal Adedoyin Isola & Omoluabi Ehis Taiwo & Ahmed Victor & Babalola Kehinde Leke, 2014. "An Enquiry into the Contributions of Microfinance Institutions Towards the Development of Small Scale Business in Nigeria," International Journal of Business, Economics and Management, Conscientia Beam, vol. 1(6), pages 88-100.
    8. Thorsten Beck & Asli Demirgüç-Kunt & Ross Levine, 2010. "Financial Institutions and Markets across Countries and over Time: The Updated Financial Development and Structure Database," The World Bank Economic Review, World Bank, vol. 24(1), pages 77-92, January.
    9. Bertoni, Fabio & Brault, Julien & Colombo, Massimo G. & Quas, Anita & Signore, Simone, 2019. "Econometric study on the impact of EU loan guarantee financial instruments on growth and jobs of SMEs," EIF Working Paper Series 2019/54, European Investment Fund (EIF).
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. repec:ers:journl:v:xxiv:y:2021:i:3:p:590-614 is not listed on IDEAS
    2. Wahidin, Deni & Akimov, Alexandr & Roca, Eduardo, 2021. "The impact of bond market development on economic growth before and after the global financial crisis: Evidence from developed and developing countries," International Review of Financial Analysis, Elsevier, vol. 77(C).
    3. Hassan Hamadi & Charbel Bassil, 2015. "Financial Development and Economic Growth in the MENA Region," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 57(4), pages 598-622, December.
    4. Reyes Samaniego-Medina & Pilar Giraldez-Puig, 2022. "Do Sustainability Risks Affect Credit Ratings? Evidence from European Banks," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 24(61), pages 720-720, August.
    5. Vinogradov, Dmitri & Makhlouf, Yousef, 2021. "Two faces of financial systems: Provision of services versus shock-smoothing," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 75(C).
    6. Khalid, Usman & Shafiullah, Muhammad, 2021. "Financial development and governance: A panel data analysis incorporating cross-sectional dependence," Economic Systems, Elsevier, vol. 45(2).
    7. Tran Thi Bach Yen & Le Binh Minh & Tran Thu Huong, 2019. "Analyzing the Barriers to Innovation Development in Emerging Economies: Vietnamese Small and Medium Enterprises (SMEs) as an Empirical Case," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 9(1), pages 64-77, January.
    8. Huang, Ho-Chuan (River) & Fang, WenShwo & Miller, Stephen M., 2014. "Does financial development volatility affect industrial growth volatility?," International Review of Economics & Finance, Elsevier, vol. 29(C), pages 307-320.
    9. Liu, Guanchun & Zhang, Chengsi, 2020. "Does financial structure matter for economic growth in China," China Economic Review, Elsevier, vol. 61(C).
    10. Mumin Atalay Cetin & Ibrahim Bakirtas, 2020. "The long-run environmental impacts of economic growth, financial development, and energy consumption: Evidence from emerging markets," Energy & Environment, , vol. 31(4), pages 634-655, June.
    11. Salifou Ouedraogo & Hamidou Sawadogo, 2022. "Financial development, financial structure and economic growth in the Sub‐Saharan African countries," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 27(3), pages 3139-3162, July.
    12. Rosa Capolupo, 2018. "Finance, Investment and Growth: Evidence for Italy," Economic Notes, Banca Monte dei Paschi di Siena SpA, vol. 47(1), pages 145-186, February.
    13. 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.
    14. Guan-Chun Liu & Chien-Chiang Lee, 2019. "The relationship between insurance and banking sectors: does financial structure matter?," The Geneva Papers on Risk and Insurance - Issues and Practice, Palgrave Macmillan;The Geneva Association, vol. 44(4), pages 569-594, October.
    15. Li, Yuanyuan & Wigniolle, Bertrand, 2017. "Endogenous information revelation in a competitive credit market and credit crunch," Journal of Mathematical Economics, Elsevier, vol. 68(C), pages 127-141.
    16. George Asumadu & Emmanuel Amo-Bediako, 2021. "Stock Market Performance and Economic Growth Nexus: A Panacea or Pain to Ghana?," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 5(4), pages 423-429, April.
    17. Kurz, Michael & Kleimeier, Stefanie, 2019. "Credit Supply: Are there negative spillovers from banks’ proprietary trading? (RM/19/005-revised-)," Research Memorandum 026, Maastricht University, Graduate School of Business and Economics (GSBE).
    18. Nicola Cetorelli & Michele Gambera, 2001. "Banking Market Structure, Financial Dependence and Growth: International Evidence from Industry Data," Journal of Finance, American Finance Association, vol. 56(2), pages 617-648, April.
    19. Bilgehan TEKIN & Erol YENER, 2019. "The causality between economic growth and stock market in developing and developed countries: Toda-Yamamoto approach," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania / Editura Economica, vol. 0(2(619), S), pages 79-90, Summer.
    20. Tongurai, Jittima & Vithessonthi, Chaiporn, 2018. "The impact of the banking sector on economic structure and growth," International Review of Financial Analysis, Elsevier, vol. 56(C), pages 193-207.
    21. Bruno, Michael & Ravallion, Martin & Squire, Lyn, 1996. "Equity and growth in developing countries : old and new perspectives on the policy issues," Policy Research Working Paper Series 1563, The World Bank.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;
    ;

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G23 - Financial Economics - - Financial Institutions and Services - - - Non-bank Financial Institutions; Financial Instruments; Institutional Investors
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ers:journl:v:xxiv:y:2021:i:3-part1:p:590-614. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Marios Agiomavritis (email available below). General contact details of provider: https://ersj.eu/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.