Arbeitspapier
Why Do Banks Go Abroad? - Evidence from German Data
This paper provides empirical evidence on the determinants of foreign activities of German banks. We use regionally disaggregated panel data for the years 1981?98 and distinguish foreign direct investment from total foreign assets of domestic banks, of their foreign branches and their subsidiaries. Foreign activities are found to be positively related to demand conditions on the local market, foreign activities of German firms, and the presence of financial centers. This supports the hypothesis that German banks follow their customers abroad. Exchange rate volatility has some negative impact. EU membership and the abolition of capital controls seem to have exerted a greater influence on foreign assets than on FDI of German banks, thus weakly supporting the hypothesis that the two are substitutes.
- Language
-
Englisch
- Bibliographic citation
-
Series: Kiel Working Paper ; No. 948
- Classification
-
Wirtschaft
International Investment; Long-term Capital Movements
Multinational Firms; International Business
Banks; Depository Institutions; Micro Finance Institutions; Mortgages
- Subject
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foreign activities of commercial banks
Germany
panel cointegration
Bank
Multinationales Unternehmen
Direktinvestition
Deutschland
- Event
-
Geistige Schöpfung
- (who)
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Buch, Claudia M.
- Event
-
Veröffentlichung
- (who)
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Kiel Institute of World Economics (IfW)
- (where)
-
Kiel
- (when)
-
1999
- Handle
- Last update
-
10.03.2025, 11:41 AM CET
Data provider
This object is provided by:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Buch, Claudia M.
- Kiel Institute of World Economics (IfW)
Time of origin
- 1999
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