Book Review of Gaurav Nayyar, The Service Sector in India’s Development, Cambridge University Press; 2012, pp.312, Hardback, Rs. 700, ISBN 978-1-10-701989-8

We study how foreign bank penetration affects financial sector development in poor countries. A theoretical model shows that when domestic banks are better than foreign banks at monitoring soft information customers, foreign bank entry may hurt these customers and worsen welfare. The model also...