A transdisciplinary policy to maximize regional supply-links economic value through credit allocation
Federico Trigos, Carlos Mario Aldana
Abstract
Many financial institutions address regional economic development as a corporate driver, but they usually focus on individual application credit risk assessment without a long-term policy to impact regional economic development systemically (considering all stakeholders). One way to promote economic development is by increasing value creation in current supply chain links and participating in more links (outperforming competition). Financial institutions are essential in this endeavor. By using a transdisciplinary approach (method) that involves a number of engineering (engineering economics, mathematical programming) and non-engineering disciplines (finance, accounting, banking, policy making) that consider the complete set of stakeholders (actors such as credit applicants, financial institutions, society at large, governments, among others), the contribution of this work is a framework to design a transdisciplinary credit allocation policy that financial institutions could rely on to have a targeted aim significant impact in the strategic economic transformation of focused regions. The proposed framework shows its significant systemic regional economic effects compared to traditional credit allocation methods. The article provides a numerical illustration for practitioner benefit and highlights the framework advantages.
Keywords
References
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Submitted date:
08/16/2022
Accepted date:
09/27/2022
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