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?
Table of Contents
1. Research Aims and Objectives
2. Research Topic Background
3. Methodology and Data Sources
4. Expected Output, Provisional Timeframe of Activities and Other Issues
Research Objectives and Core Themes
This research project aims to analyze the empirical relationship between the growth of micro, small, and medium-sized enterprises (MSME) and the overall competitiveness of the Bulgarian banking sector during the 1998-2007 period. By examining key performance indicators and banking productivity metrics, the study seeks to determine how the expansion of the MSME sector influences the lending behavior and financial performance of commercial banks in a post-crisis market environment.
- Impact of MSME growth on banking sector competitiveness.
- Analysis of banking productivity using total factor productivity (TFP).
- Evaluation of corporate growth indicators such as R&D expenditure and capital investment.
- Assessment of the role of debt financing in facilitating economic growth for smaller business units.
- Investigation of banking sector performance in the context of the Bulgarian currency board regime.
Excerpt from the Research Proposal
3. Methodology and Data Sources
The nature of research topic implies collection and analysis of secondary data. Main raw data sources include: National Statistical Institute (NSI); reports of ESTAT Sociological Agency prepared for the Ministry of Economics and Energy; sociological surveys on the condition of MSME conducted by Vitosha Research Agency; Bankscope. Statisatical/Econometric analysis is conducted using SPSS and Eviews software packages.
The theoretical framework to this research will be provided by review of contemporary literature from databases (Google Scholar and Scopus) and the internet. Given geographic restriction of the topic, substantial amount of Bulgarian language literature is also under review.
For validity reasons, banking system will be represented by the country’s top ten banks based on total assets. These banks (also called “Group I” banks) account for approximately 75% of the total banking system assets. Understandably, they are also the leading banks in lending (Bulgaria, 2008, p.57-58).
The period of interest (1998-2007) has been chosen based on the lack of economic and financial stability in post-communist Bulgaria until 1998. The period 1990-1997 has been characterized by massive acts of privatization and heavy financial crisis and is hence not applicable for assessing correlations under normal market conditions.
Chapter Summaries
1. Research Aims and Objectives: Defines the core research question regarding the impact of MSME growth on banking competitiveness and outlines the project milestones.
2. Research Topic Background: Provides the economic context of MSMEs in Bulgaria, highlighting their role in employment and innovation, and reviews previous studies on the Bulgarian banking sector.
3. Methodology and Data Sources: Describes the secondary data collection methods, the selection of the top ten commercial banks, and the econometric techniques for analyzing productivity and growth correlations.
4. Expected Output, Provisional Timeframe of Activities and Other Issues: Details the anticipated deliverables, the research timeline, and potential challenges such as data availability and geographic constraints.
Keywords
Bulgaria, Banking Sector, MSME, Economic Growth, Competitiveness, Total Factor Productivity, Debt Finance, Financial Intermediation, Currency Board, Privatization, Corporate Growth Indicators, Econometric Analysis, Commercial Banks, Lending Behavior, Market Liberalization.
Frequently Asked Questions
What is the primary focus of this research proposal?
The proposal focuses on investigating the influence of micro, small, and medium-sized enterprise (MSME) growth on the competitive performance of the Bulgarian banking sector between 1998 and 2007.
What are the central thematic areas of the study?
The study centers on MSME economic performance, banking productivity metrics, credit availability for smaller firms, and the stabilization of the banking sector following the 1996-1997 financial crisis.
What is the core research question?
The research seeks to answer: "How does MSME growth impact competitiveness in the banking sector?"
Which scientific methods are employed?
The research uses quantitative methods, specifically OLS multiple regression and descriptive statistics, to analyze secondary data collected from national agencies and banking databases.
What does the main body of the research cover?
It covers the establishment of an MSME sector profile, the calculation of banking productivity using the TFP formula, and the empirical testing of correlations between corporate growth and bank performance.
How would you characterize this work using keywords?
This work is characterized by terms such as Banking Competitiveness, MSME Growth, Bulgarian Economy, Financial Intermediation, and Econometric Modeling.
Why was the 1998-2007 period chosen for this analysis?
This period was selected because 1998 marks the introduction of the currency board in Bulgaria, providing a stable economic environment for analysis that was absent during the turbulent 1990-1997 period.
How will the research determine the "top ten" banks?
The research focuses on the top ten banks by total assets, known as "Group I" banks, which collectively account for approximately 75% of the total banking system assets in Bulgaria.
What is the role of the TFP formula in this study?
Total Factor Productivity (TFP) is utilized as a quantitative measure to assess how efficiently the banking sector converts inputs, such as labor and capital, into bank output (loans).
What are the potential limitations mentioned by the author?
The author notes challenges regarding the potential lack of contemporary English-language literature, the costs of obtaining specific raw data, and the existence of a "gray" economy that may skew MSME growth statistics.
- Quote paper
- Dimitar Vasilev (Author), 2009, Role of MSME Growth in Bulgaria’s Banking Sector Competitiveness: A Post Crisis Perspective (1998-2007), Munich, GRIN Verlag, https://www.grin.com/document/180773
