Entry of foreign banks in the People's Republic of China: a survival analysis
AbstractThis study uses survival analysis to examine the factors determining the decision of a foreign bank to establish a branch in the PRC. Bank size and international diversification are found to have a significant positive impact on the probability of entry. Banks from Asia have particular cultural and locational advantages in this context and are found to be more likely to enter this market. Market conditions in the host economy, exemplified by an improved political environment and increasing levels of international trade, are also found to be significant determinants of the timing of entry. Access to China's banking sector will increase upon entry to the WTO and again cultural links and location are likely to play a key role for foreign entrants, particularly for those operating in local currency markets.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Taylor & Francis Journals in its journal Applied Economics.
Volume (Year): 35 (2003)
Issue (Month): 1 ()
Contact details of provider:
Web page: http://www.tandfonline.com/RAEC20
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Gray, Jean M. & Gray, H. Peter, 1981. "The multinational bank: A financial MNC?," Journal of Banking & Finance, Elsevier, vol. 5(1), pages 33-63, March.
- Goldberg, Lawrence G. & Grosse, Robert, 1994. "Location choice of foreign banks in the United States," Journal of Economics and Business, Elsevier, vol. 46(5), pages 367-379, December.
- Yamori, Nobuyoshi, 1998. "A note on the location choice of multinational banks: The case of Japanese financial institutions," Journal of Banking & Finance, Elsevier, vol. 22(1), pages 109-120, January.
- Hondroyiannis, George & Papapetrou, Evangelia, 1996. "International banking activity in Greece: The recent experience," Journal of Economics and Business, Elsevier, vol. 48(3), pages 207-215, August.
- Goldberg, Lawrence G. & Saunders, Anthony, 1981. "The determinants of foreign banking activity in the United States," Journal of Banking & Finance, Elsevier, vol. 5(1), pages 17-32, March.
- Fama, Eugene F., 1985. "What's different about banks?," Journal of Monetary Economics, Elsevier, vol. 15(1), pages 29-39, January.
- Ursacki, Terry & Vertinsky, Ilan, 1992. "Choice of entry timing and scale by foreign banks in Japan and Korea," Journal of Banking & Finance, Elsevier, vol. 16(2), pages 405-421, April.
- Yang Ni & Shasha Guo & David Giles, 2010.
"Capital structures in an emerging market: a duration analysis of the time interval between IPO and SEO in China,"
Applied Financial Economics,
Taylor & Francis Journals, vol. 20(19), pages 1531-1545.
- Yang Ni & Shasha Guo & David E. Giles, 2009. "Capital Structures in an Emerging Market: A Duration Analysis of the Time Interval Between IPO and SEO in China," Econometrics Working Papers 0905, Department of Economics, University of Victoria.
- Reinhold Decker & Xuemin Zhao, 2004. "SMEs' Choice of Foreign Market Entry Mode: A Normative Approach," International Journal of Business and Economics, College of Business, and College of Finance, Feng Chia University, Taichung, Taiwan, vol. 3(3), pages 181-200, December.
- Huang, Ying & Sternquist, Brenda, 2007. "Retailers' foreign market entry decisions: An institutional perspective," International Business Review, Elsevier, vol. 16(5), pages 613-629, October.
- Berger, Allen N. & Hasan, Iftekhar & Zhou, Mingming, 2009. "Bank ownership and efficiency in China: What will happen in the world's largest nation?," Journal of Banking & Finance, Elsevier, vol. 33(1), pages 113-130, January.
- M.K. Leung & T. Young & D. Rigby, 2003. "Explaining the profitability of foreign banks in Shanghai," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 24(1), pages 15-24.
- Chan, Kam C. & Fung, Hung-Gay & Thapa, Samanta, 2007. "China financial research: A review and synthesis," International Review of Economics & Finance, Elsevier, vol. 16(3), pages 416-428.
- Jun Du & Sourafel Girma, 2011. "Cost economies, efficiency and productivity growth in the Chinese banking industry: evidence from a quarterly panel dataset," Empirical Economics, Springer, vol. 41(1), pages 199-226, August.
- Bontempi, Maria Elena & Prodi, Giorgio, 2009. "Entry strategies into China: The choice between Joint Ventures and Wholly Foreign-Owned Enterprises: An application to the Italian manufacturing sector," International Review of Economics & Finance, Elsevier, vol. 18(1), pages 11-19, January.
- Subal Kumbhakar & Dan Wang, 2007. "Economic reforms, efficiency and productivity in Chinese banking," Journal of Regulatory Economics, Springer, vol. 32(2), pages 105-129, October.
- Antonio Majocchi & Ulrike Mayrhofer & Joaquin Camps, 2010. "The choice between joint ventures and non equity-alliances: evidence from Italian firms," Post-Print halshs-00690216, HAL.
- Berger , Allen N & Hasan , Iftekhar & Zhou, Mingming, 2007. "Bank ownership and efficiency in China: what lies ahead in the world’s largest nation?," Research Discussion Papers 16/2007, Bank of Finland.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Michael McNulty).
If references are entirely missing, you can add them using this form.