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Financial inclusion, bank ownership, and economy performance: Evidence from developing countries

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  • Marcelin, Isaac
  • Egbendewe, Aklesso Y.G.
  • Oloufade, Djoulassi K.
  • Sun, Wei

Abstract

This study analyzes financial inclusion and bank ownership structure's macro impact, using data from 44 developing countries over 2004-2017. Although foreign bank participation enhances the banking sector's efficiency, the benefits decline with circumscribed and exclusory intermediation, resulting in reduced per capita GDP and output growth. Use of and access to financial services and products, including ATMs availability and depositor accounts, positively impact economic performance. To positively impact the economy, financial inclusion and bank ownership require a minimum level of institutional quality.

Suggested Citation

  • Marcelin, Isaac & Egbendewe, Aklesso Y.G. & Oloufade, Djoulassi K. & Sun, Wei, 2022. "Financial inclusion, bank ownership, and economy performance: Evidence from developing countries," Finance Research Letters, Elsevier, vol. 46(PA).
    • Handle: RePEc:eee:finlet:v:46:y:2022:i:pa:s1544612321003482
    DOI: 10.1016/j.frl.2021.102322
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    More about this item

    Keywords

    Financial inclusion; Output growth; Ownership structure; Institution's quality;
    All these keywords.

    JEL classification:

    • G18 - Financial Economics - - General Financial Markets - - - Government Policy and Regulation
    • G20 - Financial Economics - - Financial Institutions and Services - - - General
    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation
    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance

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