Foreign bank presence and financial development in emerging market and developing economies

An empirical investigation

Research output: Chapter in Book/Report/Conference proceedingChapter

1 Citation (Scopus)

Abstract

This chapter empirically examines the relationship between foreign bank presence and financial development in a panel framework covering 57 emerging market and developing economies (EMDEs) over 1995-2009. Specifically, the chapter undertakes an empirical investigation of three inter-related questions: One, how does greater foreign bank presence affect domestic credit creation in EMDEs? Two, are there threshold levels of foreign bank presence associated with financial sector development? Three, is the relationship between foreign banks and financial development conditional on the presence of a threshold level of institutional environment? While we find a positive relationship between foreign banks and financial development in general, the empirical results suggest that a strong information environment tends to strengthen the beneficial impact that foreign banks can have on financial development.

Original languageEnglish
Title of host publicationInternational Trade and International Finance
Subtitle of host publicationExplorations of Contemporary Issues
PublisherSpringer India
Pages565-584
Number of pages20
ISBN (Electronic)9788132227977
ISBN (Print)9788132227953
DOIs
Publication statusPublished - Jan 1 2016
Externally publishedYes

Fingerprint

Empirical investigation
Financial development
Emerging market economies
Foreign banks
Developing economies
Financial sector development
Information environment
Institutional environment
Empirical results
Money creation

Keywords

  • Financial development
  • Foreign bank entry
  • Institutional thresholds

ASJC Scopus subject areas

  • Economics, Econometrics and Finance(all)
  • Business, Management and Accounting(all)

Cite this

Gopalan, S. (2016). Foreign bank presence and financial development in emerging market and developing economies: An empirical investigation. In International Trade and International Finance: Explorations of Contemporary Issues (pp. 565-584). Springer India. https://doi.org/10.1007/978-81-322-2797-7_28

Foreign bank presence and financial development in emerging market and developing economies : An empirical investigation. / Gopalan, Sasidaran.

International Trade and International Finance: Explorations of Contemporary Issues. Springer India, 2016. p. 565-584.

Research output: Chapter in Book/Report/Conference proceedingChapter

Gopalan, S 2016, Foreign bank presence and financial development in emerging market and developing economies: An empirical investigation. in International Trade and International Finance: Explorations of Contemporary Issues. Springer India, pp. 565-584. https://doi.org/10.1007/978-81-322-2797-7_28
Gopalan S. Foreign bank presence and financial development in emerging market and developing economies: An empirical investigation. In International Trade and International Finance: Explorations of Contemporary Issues. Springer India. 2016. p. 565-584 https://doi.org/10.1007/978-81-322-2797-7_28
Gopalan, Sasidaran. / Foreign bank presence and financial development in emerging market and developing economies : An empirical investigation. International Trade and International Finance: Explorations of Contemporary Issues. Springer India, 2016. pp. 565-584
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