Furthering inclusive banks and inclusive capital markets: emerging markets' perspective

Josephine Ofosu-Mensah Ababio, Kofi A. Osei, Godfred Alufar Bokpin and Eric Osei-Assibey

International Journal of Financial Services Management, 2018, vol. 9, issue 3, 255-287

Abstract: This paper examines how increased financial inclusion fosters an inclusive banking sector and capital market, and whether they in turn promote more financial inclusion in emerging markets. The System-GMM technique and Panel Granger Causality Test were employed for the analyses. The paper provides empirical evidence that financial inclusion enhances the banking sector, the bond and stock markets inclusiveness. Besides, the Panel Granger Test results show a uni-causality linkage for banks and the stock market, while it confirmed a bi-causality linkage between banks and the bond market in emerging markets. It concludes that increased financial inclusion promotes inclusive banks and capital markets, but the reverse does not apply to the stock market. The findings imply that greater financial inclusion is needed in building inclusive banks and capital markets in emerging markets. Their policy-makers must not ignore the large local population and enterprises when mobilising savings, capital resources and allocating credit facilities.

Keywords: increased financial inclusion; inclusive well-functioning banking sector; inclusive well-developed capital market; system-GMM; emerging markets. (search for similar items in EconPapers)
Date: 2018
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.inderscience.com/link.php?id=93867 (text/html)
Access to full text is restricted to subscribers.

Related works:
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:ids:ijfsmg:v:9:y:2018:i:3:p:255-287

Access Statistics for this article

More articles in International Journal of Financial Services Management from Inderscience Enterprises Ltd
Bibliographic data for series maintained by Sarah Parker ().