An Application of the Theory of Foreign Direct Investment to Multinational Banking in LDCs
For assessing the determinants of MNBs' expansion into LDCs, a model that incorporates both supply and demand factors is constructed. A reduced form of the model is tested by using pooled data over the period 1975–1982 for a sample of twenty-three LDCs. The results of the study indicate that market size, the presence of multinational corporations from the home country, the extent of economic development, and the balance of payments are all significant determinants of the growth of MNBs in LDCs.© 1988 JIBS. Journal of International Business Studies (1988) 19, 433–447
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Volume (Year): 19 (1988)
Issue (Month): 3 (September)
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