(African Economic Research Consortium, 2021-08) Vera Fiador, Agyapomaa Gyeke-Dako; Agbloyor, Elikplimi Komla; Abor, Joshua Yindenaba
This paper investigates how banking sector competition, measured from the
consumer's perspective as well as from financial intermediary pricing behaviour,
affects financial inclusion in a developing country like Ghana. Financial inclusion
in Ghana has remained low, leading us to examine if competition within banks
(who happen to be the largest financial institutions) promotes financial inclusion.
This paper measures competition using two indicators: the consumer-level
measure of competition relating to the proliferation of bank branches, and a
measure for banking sector competition using the funding-adjusted Lerner index