Do reforms in transition economies affect foreign bank entry?
AbstractUsing a newly developed database for 8 transition economies, this paper examines whether reforms and political freedom are important for foreign bank entry. The paper provides strong evidence that foreign bank entry positively responds to reform measures. We also find some evidence for the importance of political freedom. The size of the financial sector and the openness of a country appear to be important determinants of a country\'s willingness to attract foreign banks. Moreover, we find that reforms significantly affect foreign bank entry via the efficiency of the financial sector, the structure of the financial sector and by stimulating domestic investment.
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Bibliographic InfoPaper provided by University of Groningen, CCSO Centre for Economic Research in its series CCSO Working Papers with number 200205.
Date of creation: 2002
Date of revision:
Other versions of this item:
- Robert Lensink & Jakob Haan, 2002. "Do Reforms in Transition Economies Affect Foreign Bank Entry?," International Review of Finance, International Review of Finance Ltd., vol. 3(3-4), pages 213-232.
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- Liviu Voinea & Flaviu Mihaescu, 2006. "The Determinants of Foreign Banking Activity in South East Europe: Do FDI, Bilateral Trade and EU Policies Matter?," The wiiw Balkan Observatory Working Papers 067, The Vienna Institute for International Economic Studies, wiiw.
- Tigran Poghosyan & Jakob de Haan, 2008. "Determinants of Cross-Border Bank Acquisitions in Transition Economies: A Latent Class Analysis," CESifo Working Paper Series 2372, CESifo Group Munich.
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