This study investigates the relationship between tourism development (TD) and financial inclusion (FI) in Vietnam, considering the influence of contextual factors such as domestic private sector development, education attainment, and institutional quality. The study employs a two-step generalised method of moments (GMM) estimator to address unobservable heterogeneity, simultaneity, and dynamic potential endogeneity for consistent estimation. The findings support the theoretical perspective of ecotourism and tourism-led growth, revealing that increased tourism revenue, passenger arrivals, shopping malls, and goods sales positively contribute to the FI index and its components. Notably, the study highlights the moderating role of domestic private sector development, effective institutions, and higher education levels in enhancing the nexus. Based on our findings, policy implications are drawn to foster sustainable tourism and financial inclusion. First, policymakers should prioritise supporting the growth of domestic private sector enterprises, emphasising local ownership for mutual benefits. Second, investing in education, especially in underserved areas, is essential for improving financial inclusion, as higher education levels facilitate engagement with formal financial services and reduce financial voluntary exclusion. Third, enhancing institutional quality is vital to creating a fair and transparent environment in the tourism industry, promoting responsible practices, and empowering local communities.
Nguyen et al. (Sat,) studied this question.