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Politics and the International Lending Decisions of Banks

Author

Listed:
  • Arvind K Jain

    (Indiana University)

  • Douglas Nigh

    (University of South Carolina)

Abstract

It is widely believed that a country's foreign policy can influence the behavior of economic agents. We examine that extent to which political relationships between a bank's home country and a borrowing country affect the lending behavior of banks. Analysis of cooperative as well as conflictive events shows that banks consider mostly the former in their decision making process. The study points to a need for an interdisciplinary approach for explaining the international behavior of economic entities.© 1989 JIBS. Journal of International Business Studies (1989) 20, 349–359

Suggested Citation

  • Arvind K Jain & Douglas Nigh, 1989. "Politics and the International Lending Decisions of Banks," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 20(2), pages 349-359, June.
  • Handle: RePEc:pal:jintbs:v:20:y:1989:i:2:p:349-359
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    Cited by:

    1. Zhenkuo Ding & Man Hu & Sheng Huang, 2023. "Diplomatic Relations and Firm Internationalization Speed: The Moderating Roles of Trade Openness and Firm Ownership," Management International Review, Springer, vol. 63(6), pages 911-941, December.
    2. Chengguang Li & Ilgaz Arikan & Oded Shenkar & Asli Arikan, 2020. "The impact of country-dyadic military conflicts on market reaction to cross-border acquisitions," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 51(3), pages 299-325, April.
    3. Ekman, Peter & Hadjikhani, Annoch Isa & Pajuvirta, Andreas & Thilenius, Peter, 2014. "Tit for tat and big steps: The case of Swedish banks’ internationalization 1961–2010," International Business Review, Elsevier, vol. 23(6), pages 1049-1063.

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