Skip to main content
SpringerLink
Log in

Favorable credit to private agents and the local economies in the deprived regions of Brazil: a spatial panel analysis

  • Original Paper
  • Published:
Letters in Spatial and Resource Sciences Aims and scope Submit manuscript

Abstract

This article examines how the resources transferred to private economic agents under favorable conditions through Constitutional Funds affect the GDP per capita of municipalities in the deprived regions of Brazil. We utilize data spanning from 2002 to 2019 and employ Spatial Econometrics models to address observed spatial autocorrelation. Additionally, we incorporate loans from other public sources to firms in these municipalities. The results reveal that both sources of loans have a minor positive effect on the GDP per capita of these municipalities.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Log in via an institution

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Institutional subscriptions

Fig. 1

Similar content being viewed by others

References

  • Aivazian, V. A., Santor, E.: Financial constraints and investment: assessing the impact of a World Bank credit program on small and medium enterprises in Sri Lanka. Canadian J Econ/Revue canadienne d'économique, 41(2), 475–500 (2008)

  • Anselin, L., Bera, A.K.: Spatial dependence in linear regression models with an introduction to spatial econometrics. Statist. Textbooks Monogr. 155, 237–290 (1998)

    Google Scholar 

  • Armeanu, D., Pascal, C., Poanta, D., Doia, C.A.: The credit impact on the economic growth. Theor. Appl. Econ. 22(1) (2015)

  • Árvai, Z., Driessen, K. İ. Ötker-Robe.: “Regional Financial Interlinkages and Financial Contagion Within Europe”. IMF Working Paper 09/6 (2009)

  • Backé, P., Wójcik, C.: Credit booms, monetary integration and the new neoclassical synthesis. J. Bank. Finance 32(3), 458–470 (2008)

  • Beck, T., Demirguc-Kunt, A.: Small and medium-size enterprises: Access to finance as a growth constraint. J. Bank. Finance 32(11), 2931–2943 (2006)

  • Beck, T., Demirgüç-Kunt, A. S. L. I., Maksimovic, V.: Financial and legal constraints to growth: does firm size matter? J. Finance 60(1), 137–177 (2005)

  • Besanko, D., Thakor, A.V.: Banking deregulation: allocational consequences of relaxing entry barriers. J. Bank. Finance 16(5), 909–932 (1992)

    Article  Google Scholar 

  • Bivand, R.S.: Progress in the R ecosystem for representing and handling spatial data. J. Geogr. Syst. 23(4), 515–546 (2021)

    Article  Google Scholar 

  • Bollaert, H., Lopez-de-Silanes, F., Schwienbacher, A.: Fintech and access to finance. J. Corp. Financ. 68, 101941 (2021)

    Article  Google Scholar 

  • Chodorow-Reich, G., Darmouni, O., Luck, S., Plosser, M.: Bank liquidity provision across the firm size distribution. J. Financ. Econ. 144(3), 908–932 (2022)

    Article  Google Scholar 

  • Debarsy, N., Ertur, C., & LeSage, J. P.: Interpreting dynamic space–time panel data models. Statistical Methodology, 9(1-2), 158–171 (2012)

  • Ehrl, P., Portugal, R.: Distribuição de crédito e crescimento no Nordeste: Uma comparação entre BNDES e BNB 2010–2019, Texto para Discussão, No. 2678, Instituto de Pesquisa Econômica Aplicada (IPEA), Brasília, (2021) https://doi.org/10.38116/td2678

  • Elhorst, J.P.: Applied spatial econometrics: raising the bar. Spat. Econ. Anal. 5(1), 9–28 (2010a)

    Article  Google Scholar 

  • Elhorst, J.P.: Spatial panel data models. In: Fischer, M.M., Getis, A. (eds.) Handbook of applied spatial analysis, pp. 377–407. Springer, Berlin (2010b)

    Chapter  Google Scholar 

  • Granja, J., Makridis, C., Yannelis, C., Zwick, E.: Did the paycheck protection program hit the target? J. Financ. Econ. 145(3), 725–761 (2022)

    Article  Google Scholar 

  • Greene, W.H.: Econometric Analysis, 6th edn. Pearson Prentice Hall, Upper Saddle River (2005)

    Google Scholar 

  • Guzman, M. G.: Bank structure, capital accumulation and growth: a simple macroeconomic model. Econ Theory 16, 421–455 (2000)

  • Haiss, P.R., Kichler, E.: Leasing, credit and economic growth: Evidence for Central and South Eastern Europe (2009)

  • Helhel, Y.: Financial development and economic growth relationship: an analysis with credit based financial index. Bus. Econ. Res. J. 9(4), 761–771 (2018)

    Article  Google Scholar 

  • Iqbal, M.Z., Ahmad, N., Hussain, Z.: Impact of savings and credit on economic growth in Pakistan. Pak. J. Soc. Sci. (PJSS) 32(1), 39–48 (2012)

    Google Scholar 

  • Krishnankutty, R.: Role of banks credit in economic growth: a study with special reference to North East India. Econ. Res. Guard. 1(2), 60–71 (2011)

    Google Scholar 

  • Leitão, N.C.: Bank credit and economic growth: a dynamic panel data analysis. Econ. Res. Guard. 256–267 (2012)

  • Lesage, J.P., Pace, R.K.: Introduction to Spatial Econometrics. CRC Press Taylor e Francis Group, Boca Raton (2009)

    Book  Google Scholar 

  • Pu, G., Qamruzzaman, M.D., Mehta, A.M., Naqvi, F.N., Karim, S.: Innovative finance, technological adaptation and SMEs sustainability: the mediating role of government support during COVID-19 pandemic. Sustainability 13(16), 9218 (2021)

    Article  Google Scholar 

  • Quaglio, G.M., Paiva, C.C.: A questão regional e o BNDES: uma análise da conformidade entre a atuação do Banco e a Política Nacional de Desenvolvimento Regional (PNDR). Econ. Soc. 26, 337–368 (2017)

    Article  Google Scholar 

  • Resende, G.M., Da Silva, D.F.C., Da Silva Filho, L.A.: Avaliação econômica do Fundo Constitucional de Financiamento do Nordeste (FNE): uma análise espacial por tipologia da PNDR entre 1999 e 2011. Rev. Econ. Nordeste 48(1), 9–29 (2017)

    Google Scholar 

  • Resende, G., Cravo, T., Carvalho, A. (2014). The Impact of Brazilian Regional Development Funds on Regional Economic Growth: A spatial panel approach. 54 th ERSA Congress, 26–29 August 2014 – Saint Petersburg, Russia

  • Resende, G., Cravo, T., Carvalho, A.: The impact of Brazilian regional development funds on regional economic growth: a spatial panel approach. In: 54th ERSA Congress, August 2014. Anais Saint Petersburg, Russia (2014)

  • Roychowdhury, S., Shroff, N., Verdi, R.S.: The effects of financial reporting and disclosure on corporate investment: a review. J. Account. Econ. 68(2–3), 101246 (2019)

    Article  Google Scholar 

  • Silva, A.M., Resende, G.M., Silveira, N.R.: Uma avaliação da eficácia do FNE no período 1995–2000. Anál. Econ. (UFRGS) 25, 233–261 (2007)

    Google Scholar 

  • Stiglitz, J. E., Weiss, A.: Credit rationing in markets with imperfect information. Am. Econ. Rev. 71(3), 393–410 (1981)

  • Timsina, N.: Impact of bank credit on economic growth in Nepal. Nepal Rastra Bank Res. Dep. 22, 1–23 (2014)

    Google Scholar 

  • Torniziello Filho, W.L.: Financiamento às empresas de micro, pequeno e médio portes uma análise do perfil da liberação e da distribuição regional dos recursos direcionados pelo BNDES. Dissertação (Mestrado em Economia) - Universidade Federal de Uberlândia, 2017. DOI https://doi.org/10.14393/ufu.di.2017.403

Download references

Author information

Authors and Affiliations

  1. Regional University of Cariri, Rua Coronel Antonio Luiz, Pimenta, Crato, CE, 1161, Brazil

    Luís Abel da Silva-Filho

  2. University of Sao Paulo, Av Prof Luciano Gualberto 908, São Paulo, Brazil

    Carlos R. Azzoni, André L. S. Chagas & Gustavo Castro

Authors
  1. Luís Abel da Silva-Filho
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Carlos R. Azzoni
    View author publications

    You can also search for this author in PubMed Google Scholar

  3. André L. S. Chagas
    View author publications

    You can also search for this author in PubMed Google Scholar

  4. Gustavo Castro
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to Carlos R. Azzoni.

Additional information

Publisher's Note

Springer Nature remains neutral with regard to jurisdictional claims in published maps and institutional affiliations.

Rights and permissions

Springer Nature or its licensor (e.g. a society or other partner) holds exclusive rights to this article under a publishing agreement with the author(s) or other rightsholder(s); author self-archiving of the accepted manuscript version of this article is solely governed by the terms of such publishing agreement and applicable law.

Reprints and permissions

About this article

Check for updates. Verify currency and authenticity via CrossMark

Cite this article

da Silva-Filho, L.A., Azzoni, C.R., Chagas, A.L.S. et al. Favorable credit to private agents and the local economies in the deprived regions of Brazil: a spatial panel analysis. Lett Spat Resour Sci 16, 41 (2023). https://doi.org/10.1007/s12076-023-00363-7

Download citation

  • Received:

  • Accepted:

  • Published:

  • DOI: https://doi.org/10.1007/s12076-023-00363-7

Keywords

JEL Classification

Search

Navigation