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Banks’ Internationalization: Estonian and Russian Banks’ Expansion to the Foreign Markets

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Author Info
Jari Jumpponen () (Department of Industrial Engineering and Management, Lappeenranta University of Technology)
Kari Liuhto () (Pan-European Institute at Turku School of Economics and Business Administration)
Mart Sõrg () (Institute of Finance and Accounting at the University of Tartu)
Vello Vensel (Department of Economics at Tallinn University of Technology)
Abstract

Direct investment outflow from transition economies abroad is still modest compared to investment inflow towards transition economies. Global economy both creates preconditions for and also motivates the internatio¬nalization of banks. The main aim of the article is to study activities of Estonian and Russian commercial banks in their efforts to transform themselves from local banks to international ones. As the internationalization of banks has not proceeded without problems and setbacks, the present research tries to point out the reasons why some of the plans were not realized. The authors of the paper argue that international economic ties provide benefits to all the parties involved and that international integration is an effective way of building international stability and economic growth.

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File URL: http://deepthought.ttu.ee/majandus/tekstid/TUTWPE_04_109.pdf
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Publisher Info
Paper provided by School of Economics and Business Administration, Tallinn University of Technology in its series Working Papers with number 109.

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Length: 24
Date of creation: 2004
Date of revision:
Publication status: Published in Working Papers in Economics.School of Economics and Business Administration,Tallinn University of Technology (TUTWPE), Pages 79-102
Handle: RePEc:ttu:wpaper:109

Note: The authors gratefully acknowledge the financial support received from the Research Foundation of the OKO Bank Group, from Göran Collert Foundation, and from the Estonian Science Foundation (Project 5185).
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Related research
Keywords: banking sector reforms; banks internationalization and globalization; Estonian and Russian banks expansion abroad.;

Find related papers by JEL classification:
G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Mortgages

References listed on IDEAS
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  1. Allen N. Berger & Robert DeYoung & Hesna Genay & Gregory F. Udell, 2000. "Globalization of financial institutions: evidence from cross-border banking performance," Finance and Economics Discussion Series 2000-04, Board of Governors of the Federal Reserve System (U.S.). [Downloadable!]
    Other versions:
  2. Dario Focarelli & Alberto F. Pozzolo, 2000. "The determinants of cross-border bank shareholdings: an analysis with bank-level data from OECD countries," Proceedings, Federal Reserve Bank of Chicago, issue May, pages 199-232.
    Other versions:
  3. Tiiu Paas, 2000. "Gravity Approach For Modeling Trade Flows Between Estonia And The Main Trading Partners," University of Tartu - Faculty of Economics and Business Administration Working Paper Series 4, Faculty of Economics and Business Administration, University of Tartu (Estonia). [Downloadable!]
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This page was last updated on 2009-12-21.


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