Financial Inclusion, Bank Concentration, and Firm Performance
Lisa Chauvet and
Luc Jacolin
World Development, 2017, vol. 97, issue C, 1-13
Abstract:
This study focuses on the impact of financial inclusion and bank concentration on the performance of firms in developing and emerging countries. Using firm-level data for a sample of 55,596 firms in 79 countries, we find that financial inclusion, i.e., the distribution of financial services across firms, has a positive impact on firm growth. This positive impact is magnified when bank markets are less concentrated, a proxy for more competition among banks. We also find that more competitive banks favor firm growth only at high levels of financial inclusion, while bank concentration is particularly favorable to foreign and state-owned firms and increases firm growth at low levels of financial inclusion. In countries with limited financial deepening, the quality of the banking system (financial inclusion and bank competition) may be as important in promoting firm performance as its overall size.
Keywords: financial inclusion; bank concentration; firm performance (search for similar items in EconPapers)
Date: 2017
References: Add references at CitEc
Citations: View citations in EconPapers (96)
Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0305750X17300803
Full text for ScienceDirect subscribers only
Related works:
Working Paper: Financial inclusion, bank concentration, and firm performance (2017)
Working Paper: Financial Inclusion, Bank Concentration and Firm Performance (2016) ![Downloads](/downloads_econpapers.gif)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
HTML/Text
Persistent link: https://EconPapers.repec.org/RePEc:eee:wdevel:v:97:y:2017:i:c:p:1-13
DOI: 10.1016/j.worlddev.2017.03.018
Access Statistics for this article
World Development is currently edited by O. T. Coomes
More articles in World Development from Elsevier
Bibliographic data for series maintained by Catherine Liu (repec@elsevier.com).