Abstract
PurposeThe 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/approachThe study used a two-stage system generalized method of moment (GMM), using 28 African countries from the period 2000 to 2018.FindingsThe 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 implicationsFor 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/valueThis paper assess the extent to which developing economy's developed financial system form synergies with FBP to further enhance the inclusiveness of growth.
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