{"title":"Foreign bank presence and inclusive growth in Africa: the moderating role of financial development","authors":"Khadijah Iddrisu, Joshua Yindenaba Abor, Thadious Kannyiri Banyen","doi":"10.1108/ajems-11-2022-0444","DOIUrl":null,"url":null,"abstract":"Purpose The purpose of this study is to assess the extent to which the nexus between foreign bank presence (FBP) and inclusive growth is being impacted by the financial development. Design/methodology/approach The study used a two-stage system generalized method of moment (GMM), using 28 African countries from the period 2000 to 2018. Findings The study found a positive effect of FBP on inclusive growth. While financial development magnifies the positive effect of FBP, inclusive growth nexus, it has a direct effect on inclusive growth. Practical implications For Africa to ascertain the positive effect of FBP on inclusive growth, financial system must be developed to reduce the cream-skim behavior of foreign banks. Originality/value This paper assess the extent to which developing economy's developed financial system form synergies with FBP to further enhance the inclusiveness of growth.","PeriodicalId":46031,"journal":{"name":"African Journal of Economic and Management Studies","volume":null,"pages":null},"PeriodicalIF":1.4000,"publicationDate":"2023-11-06","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"African Journal of Economic and Management Studies","FirstCategoryId":"1085","ListUrlMain":"https://doi.org/10.1108/ajems-11-2022-0444","RegionNum":0,"RegionCategory":null,"ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q3","JCRName":"ECONOMICS","Score":null,"Total":0}
引用次数: 0
Abstract
Purpose The purpose of this study is to assess the extent to which the nexus between foreign bank presence (FBP) and inclusive growth is being impacted by the financial development. Design/methodology/approach The study used a two-stage system generalized method of moment (GMM), using 28 African countries from the period 2000 to 2018. Findings The study found a positive effect of FBP on inclusive growth. While financial development magnifies the positive effect of FBP, inclusive growth nexus, it has a direct effect on inclusive growth. Practical implications For Africa to ascertain the positive effect of FBP on inclusive growth, financial system must be developed to reduce the cream-skim behavior of foreign banks. Originality/value This paper assess the extent to which developing economy's developed financial system form synergies with FBP to further enhance the inclusiveness of growth.
期刊介绍:
African Journal of Economic and Management Studies (AJEMS) advances both theoretical and empirical research, informs policies and practices, and improves understanding of how economic and business decisions shape the lives of Africans. AJEMS is a multidisciplinary journal and welcomes papers from all the major disciplines in economics, business and management studies.