Role of MSME Growth in Bulgaria’s Banking Sector Competitiveness: A Post Crisis Perspective (1998-2007)

Research Paper (undergraduate) , 2009 , 7 Pages , Grade: 1,3

Economics - Finance

enterprises (MSME) on banking sector competitiveness. In particular, it seeks to empirically establish meaningful relationships between individual corporate growth indicators and enhanced banking performance. Such indicators include but are not limited to: volume of domestic/export business; net contribution to the country’s GDP; net contribution to the country’s aggregate value added; level of innovative activity (as measured by R&D expenditure); increase in capital expenditure (e.g. tangible fixed assets). For reasons of comprehensiveness, total factor productivity (TFP) is utilized as quantitative measure of banking sector competitiveness. In light of the previous considerations, the proposed research question is:
How does MSME growth impact competitiveness in the banking sector?

Inhaltsverzeichnis

• Research Aims and Objectives
• Research Topic Background
• Methodology and Data Sources
• Expected Output, Provisional Timeframe of Activities and Other Issues
• List of references

Zielsetzung und Themenschwerpunkte

This research project aims to investigate the impact of micro, small and medium-sized enterprises (MSME) on banking sector competitiveness in Bulgaria. It seeks to establish empirical relationships between MSME growth indicators and banking performance, specifically focusing on the period between 1998 and 2007.

• The role of MSME in driving economic growth and competitiveness in Bulgaria.
• The impact of MSME growth on banking sector productivity.
• The relationship between specific MSME growth indicators and banking performance.
• The importance of debt finance instruments for MSME in Bulgaria.
• The influence of the currency board regime on banking sector lending behavior.

Zusammenfassung der Kapitel

The research proposal outlines the objectives, methodology, and expected outcomes of a study examining the impact of MSME growth on banking sector competitiveness in Bulgaria. The study will utilize secondary data from various sources, including the National Statistical Institute, ESTAT Sociological Agency, and Bankscope, to create a comprehensive profile of the MSME sector and analyze banking sector productivity. Statistical and econometric analysis will be conducted using SPSS and Eviews software packages to identify statistically significant indicators of MSME growth and assess their relationship with banking productivity. The research will focus on the period between 1998 and 2007, a period characterized by economic and financial stability in Bulgaria following the post-communist transition.

The research will utilize a theoretical framework based on contemporary literature from databases and the internet, including Bulgarian language literature. The study will focus on the top ten banks in Bulgaria based on total assets, which account for approximately 75% of the total banking system assets. The research will utilize a non-structural estimation technique to identify statistically significant indicators of MSME growth, and a total factor productivity model to measure banking sector productivity. The study will then use OLS multiple regression to test for statistical significance between individual MSME growth indicators and banking productivity.

The research is expected to produce a detailed MSME economic performance profile, a measure of banking sector productivity over time, and a statistical analysis assessing correlations between indicators of MSME growth and banking sector productivity. The findings of the research could be used by bank managers to reassess asset management strategies, reprioritize sector debt exposure, and predict borrowing behavior of micro, small and medium-sized enterprises based on their economic performance.

Schlüsselwörter

The keywords and focus themes of the text include MSME growth, banking sector competitiveness, Bulgaria, economic growth, financial intermediation, debt finance, currency board regime, banking sector productivity, statistical analysis, econometric analysis, and asset management strategies.

• College: University of Portsmouth
• Grade: 1,3
• Author: Dimitar Vasilev (Author)
• Publication Year: 2009
• Pages: 7
• Catalog Number: V180773
• ISBN (eBook): 9783656040118
• ISBN (Book): 9783656040736
• Language: English
• Tags: role, msme, growth, bulgaria’s, banking, sector, competitiveness, post, crisis, perspective