Beyond this equity concern, there is also a standard allocation efficiency argument in the sense
that financial infrastructure is necessary to bring about best investment alternatives. Interestingly,
Paulson and Townsend (2004) provide evidence for Thailand that financial constraints are stricter
limitations to entrepreneurial activities in the less developed, rural North-East of the country than
in the more developed Central region, where Bangkok is located. This means improving access to
financial services could provide a double dividend.