Does bank competition promote financial inclusion? A cross-country evidence

Research output: Contribution to journalArticlepeer-review

Authors

  • Tra Pham
  • Kien Nguyen

External organisations

  • Eastern International University
  • RMIT University

Abstract

The idea of financial inclusion has recently been discussed as one of the key strategies to enhance economic development (World Bank 2014). We move this discussion forward by examining if bank competition is a crucial component enforcing financial inclusion, which is arguably a finance supply-side driven process. In this study, we compute the financial inclusion index built on Sarma (2008) approach to better reflect banks’ willingness and capability to provide financial services. Applying System Generalized Method of Moments to the panel of 93 countries, we find that bank competition promotes financial inclusion.

Details

Original languageEnglish
Pages (from-to)1133
Number of pages1137
JournalApplied Economics Letters
Volume26
Issue number13
Publication statusPublished - 2019
Externally publishedYes

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