Research Article
BibTex RIS Cite
Year 2019, Volume: 15 Issue: 2, 249 - 262, 30.10.2019

Abstract

References

  • Arellano, M. & Bond, S. (1991). Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations. The Review of Economic Studies, 58(2), 277–297. Arellano, M. & Bover, O. (1995). Another Look at the Instrumental Variable Estimation of Error-Components Models. Journal of Econometrics, 68(1), 29–51.Beck, T., Demirguc-Kunt, A. & Martinez- Peria, M. S. (2007). Reaching Out: Access to and Use of Banking Services Across Countries. Journal of Financial Economics, 85(1), 234–266.
  • Beck, T. & Martinez –Peria, M.S. (2010). Foreign Bank Participation and Outreach: Evidence from Mexico. Journal of Financial Intermediation, 19(1), 52–73.
  • Claessens, S. & Van Horen, N. (2014). Foreign Banks: Trends and Impact. Journal of Money, Credit and Banking, 46(1), 295–326.
  • Claessens, S. & Van Horen, N. (2015). The Impact of the Global Financial Crisis on Banking Globalization. DNB WP No. 459.
  • Cull, R. & Martinez-Peria, M.S. (2013). Bank Ownership and Lending Patterns During the 2008-2009 Financial Crisis: Evidence from Latin America and Eastern Europe. Journal of Banking and Finance, 37(12), 4861–4878.
  • De Haas, R. & Van Lelyveld, I. (2006). Foreign Banks and Credit Stability in Central and Eastern Europe. A Panel Data Analysis. Journal of Financial Intermediation, 30(7), 1927–1952.
  • De la Torre A, Martinez Pería, M.S. & Schmukler, S. L. (2010). Bank Involvement with SMEs: Beyond Relationship Lending. Journal of Banking & Finance, 34, 2280–2293.
  • Dell’Ariccia, G. & Marquez, R. (2004). Information and Bank Credit Allocation. Journal of Financial Economics, 72(1), 185-214.
  • Detragiache E., Tressel, T. & Gupta, P. (2008). Foreign Banks in Poor Countries: Theory and Evidence. The Journal of Finance, 63(5), 2123–2160.
  • Gormley, T.A. (2010). The Impact of Foreign Bank Entry in Emerging Markets: Evidence from India. Journal of Financial Intermediation, 19(1), 26–51.
  • Ellis, K. (2007). Is Financial Liberalisation Enough to Promote Financial Inclusion?”Overseas Development Institute Brief 82, June.
  • Gopalan, S. & Rajan, R. S. (2018). Foreign Banks and Financial Inclusion in Emerging and Developing Economies: An Empirical Investigation. Journal of International Development, 30, 559–583. Hausman, J. A. (1978). Specification Tests in Econometrics. Econometrica, 46, 1251-1271. Naaborg, I. Scholtens, B., De Haan, J. Bol, H. & De Haas, R. (2003). How Important are Foreign Banks in the Financial Development of European Transition Countries?, CESifo Working Paper Series 1100, CESifo Group Munich.
  • Sengupta, R. (2007). Foreign Entry and Bank Competition. Journal of Financial Economics, 84(2), 502-528.
  • Stiglitz, J. (2005). Finance for Development. In: Ayogu, M. and Ross, D. (Eds.): Development Dilemmas: The Methods and Political Ethics of Growth Policy (pp.13-25). Routledge, Taylor & Francis Inc., Great Britain,

NEXUS BETWEEN FOREIGN BANKS AND FINANCIAL INCLUSION: EVIDENCE FROM THE TRANSITION ECONOMIES

Year 2019, Volume: 15 Issue: 2, 249 - 262, 30.10.2019

Abstract

This paper examines empirically the impact of foreign
banks on access and use of financial services for a panel of transition
economies over the period 2004-2017. Transition
economies provide rich evidence for analyzing this relationship given the predominance of foreign banks in
their banking systems. The results reveal that foreign bank presence is
positively associated with banking sector outreach indicators, such as ATM and
branch penetration, after controlling for several macroeconomic, institutional
and financial country-specific factors, however foreign bank entry is found to
have no impact on the use of financial services, as measured by borrowing per
capita. Results from low and high foreign bank threshold subsamples provide
further evidence that foreign bank penetration effects on financial inclusion
do not vary by thresholds. 

References

  • Arellano, M. & Bond, S. (1991). Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations. The Review of Economic Studies, 58(2), 277–297. Arellano, M. & Bover, O. (1995). Another Look at the Instrumental Variable Estimation of Error-Components Models. Journal of Econometrics, 68(1), 29–51.Beck, T., Demirguc-Kunt, A. & Martinez- Peria, M. S. (2007). Reaching Out: Access to and Use of Banking Services Across Countries. Journal of Financial Economics, 85(1), 234–266.
  • Beck, T. & Martinez –Peria, M.S. (2010). Foreign Bank Participation and Outreach: Evidence from Mexico. Journal of Financial Intermediation, 19(1), 52–73.
  • Claessens, S. & Van Horen, N. (2014). Foreign Banks: Trends and Impact. Journal of Money, Credit and Banking, 46(1), 295–326.
  • Claessens, S. & Van Horen, N. (2015). The Impact of the Global Financial Crisis on Banking Globalization. DNB WP No. 459.
  • Cull, R. & Martinez-Peria, M.S. (2013). Bank Ownership and Lending Patterns During the 2008-2009 Financial Crisis: Evidence from Latin America and Eastern Europe. Journal of Banking and Finance, 37(12), 4861–4878.
  • De Haas, R. & Van Lelyveld, I. (2006). Foreign Banks and Credit Stability in Central and Eastern Europe. A Panel Data Analysis. Journal of Financial Intermediation, 30(7), 1927–1952.
  • De la Torre A, Martinez Pería, M.S. & Schmukler, S. L. (2010). Bank Involvement with SMEs: Beyond Relationship Lending. Journal of Banking & Finance, 34, 2280–2293.
  • Dell’Ariccia, G. & Marquez, R. (2004). Information and Bank Credit Allocation. Journal of Financial Economics, 72(1), 185-214.
  • Detragiache E., Tressel, T. & Gupta, P. (2008). Foreign Banks in Poor Countries: Theory and Evidence. The Journal of Finance, 63(5), 2123–2160.
  • Gormley, T.A. (2010). The Impact of Foreign Bank Entry in Emerging Markets: Evidence from India. Journal of Financial Intermediation, 19(1), 26–51.
  • Ellis, K. (2007). Is Financial Liberalisation Enough to Promote Financial Inclusion?”Overseas Development Institute Brief 82, June.
  • Gopalan, S. & Rajan, R. S. (2018). Foreign Banks and Financial Inclusion in Emerging and Developing Economies: An Empirical Investigation. Journal of International Development, 30, 559–583. Hausman, J. A. (1978). Specification Tests in Econometrics. Econometrica, 46, 1251-1271. Naaborg, I. Scholtens, B., De Haan, J. Bol, H. & De Haas, R. (2003). How Important are Foreign Banks in the Financial Development of European Transition Countries?, CESifo Working Paper Series 1100, CESifo Group Munich.
  • Sengupta, R. (2007). Foreign Entry and Bank Competition. Journal of Financial Economics, 84(2), 502-528.
  • Stiglitz, J. (2005). Finance for Development. In: Ayogu, M. and Ross, D. (Eds.): Development Dilemmas: The Methods and Political Ethics of Growth Policy (pp.13-25). Routledge, Taylor & Francis Inc., Great Britain,
There are 14 citations in total.

Details

Primary Language English
Journal Section Articles
Authors

Ekin Ayşe Özşuca

Publication Date October 30, 2019
Acceptance Date November 6, 2019
Published in Issue Year 2019 Volume: 15 Issue: 2

Cite

APA Özşuca, E. A. (2019). NEXUS BETWEEN FOREIGN BANKS AND FINANCIAL INCLUSION: EVIDENCE FROM THE TRANSITION ECONOMIES. Ekonomik Ve Sosyal Araştırmalar Dergisi, 15(2), 249-262.

İletişim Adresi: Bolu Abant İzzet Baysal Üniversitesi İktisadi ve İdari Bilimler Fakültesi Ekonomik ve Sosyal Araştırmalar Dergisi 14030 Gölköy-BOLU

Tel: 0 374 254 10 00 / 14 86 Faks: 0 374 253 45 21 E-posta: iibfdergi@ibu.edu.tr

ISSN (Basılı) : 1306-2174 ISSN (Elektronik) : 1306-3553