IDEAS home Printed from https://ideas.repec.org/a/taf/regstd/v45y2011i6p733-754.html
   My bibliography  Save this article

The Locational Distribution of Foreign Banks in China: A Disaggregated Analysis

Author

Listed:
  • Canfei He
  • Godfrey Yeung

Abstract

He C. and Yeung G. The locational distribution of foreign banks in China: a disaggregated analysis, Regional Studies. This paper examines the location choices made by foreign banks of different organizational form and size in China. Results from the conditional logit models suggest smaller foreign banks tend to pursue the 'follow-the-customer' strategy, while larger banks are likely to use the 'follow-the-competitor' strategy in China. The agglomeration effect is more important than the first-mover cities as a determinant of the location choices make by foreign banks in China. This finding could be partially explained by the location-bounded institutional variables that are unable to be fully reconciled with the recent deregulation policies. [image omitted] He C. et Yeung G. La distribution geographique des banques etrangeres en Chine: une analyse desagregee, Regional Studies. La presente etude cherche a analyser le choix d'emplacement des banques etrangeres en Chine en fonction de leur structure organisationnelle et de leur taille differentes. Les resultats provenant des modeles logit conditionnels laissent supposer qu'en Chine les plus petites banques etrangeres ont tendance a poursuivre la strategie de 'suivre le client', alors que les plus grandes banques sont plus susceptibles d'adopter la strategie de 'suivre le concurrent'. L'effet d'agglomeration s'avere plus important que ne l'est le phenomene du premier arrive dans les grandes villes comme determinant des choix d'emplacement des banques etrangeres en Chine. Ce resultat pourrait, du moins en partie, s'expliquer par des variables institutionnelles qui sont delimitees geographiquement et qui ne peuvent pas etre conciliees avec les politiques recentes de dereglementation. Banques etrangeres Choix d'emplacement Modele logit conditionnel Chine He C. und Yeung G. Verteilung der Standorte auslandischer Banken in China: eine disaggregierte Analyse, Regional Studies. In diesem Beitrag werden die Standortentscheidungen auslandischer Banken verschiedener Organisationsformen und Grossen in China untersucht. Aus den Ergebnissen konditionaler Logit-Modelle geht hervor, dass kleinere auslandische Banken in China meist eine Strategie des „Dem-Kunden-Folgens“ wahlen, wahrend grossere Banken meist auf eine Strategie des „Der-Konkurrenz-Folgens“ setzen. Der Agglomerationseffekt spielt als Determinant fur die Standortentscheidungen auslandischer Banken in China eine grossere Rolle als die Pionierstadte. Dieses Ergebnis lasst sich teilweise durch die standortgebundenen institutionellen Variablen erklaren, die sich nicht vollstandig mit den aktuellen Deregulationspolitiken in Einklang bringen lassen. Auslandische Banken Standortentscheidungen Konditionales Logit-Modell China He C. y Yeung G. La distribucion de ubicacion de los bancos extranjeros en China: un analisis desglosado, Regional Studies. En este articulo analizamos las decisiones de ubicacion tomadas por bancos extranjeros de diferentes formas de organizacion y tamanos en China. Los resultados de los modelos logit condicionales indican que en China los bancos extranjeros mas pequenos tienden a optar por la estrategia de 'seguir al cliente' mientras que los bancos mas grandes tienden a usar la estrategia de 'seguir a la competencia'. El efecto de aglomeracion desempena un papel mas importante que el de las ciudades pioneras para determinar las decisiones de ubicacion que realizan los bancos extranjeros en China. Estos resultados podrian explicarse en parte por las variables institucionales vinculadas a la ubicacion que no pueden reconciliarse totalmente con las recientes politicas de desregulacion. Bancos extranjeros Decisiones de ubicacion Modelo logit condicional China

Suggested Citation

  • Canfei He & Godfrey Yeung, 2011. "The Locational Distribution of Foreign Banks in China: A Disaggregated Analysis," Regional Studies, Taylor & Francis Journals, vol. 45(6), pages 733-754.
  • Handle: RePEc:taf:regstd:v:45:y:2011:i:6:p:733-754
    DOI: 10.1080/00343401003614282
    as

    Download full text from publisher

    File URL: http://www.tandfonline.com/doi/abs/10.1080/00343401003614282
    Download Restriction: Access to full text is restricted to subscribers.

    File URL: https://libkey.io/10.1080/00343401003614282?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Douglass C. North, 2005. "Introduction to Understanding the Process of Economic Change," Introductory Chapters, in: Understanding the Process of Economic Change, Princeton University Press.
    2. John H. Dunning & Sarianna M. Lundan, 2008. "Multinational Enterprises and the Global Economy, Second Edition," Books, Edward Elgar Publishing, number 3215.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Hutzschenreuter, Thomas & Matt, Tanja & Kleindienst, Ingo, 2020. "Going subnational: A literature review and research agenda," Journal of World Business, Elsevier, vol. 55(4).
    2. Tata, Fidelio, 2018. "Client-proximity-based spatial clustering of European corporate and investment banking after a hard Brexit," Finance Research Letters, Elsevier, vol. 27(C), pages 241-246.
    3. Yonglong Cai & Fenghua Pan, 2023. "The expansion of Chinese banks along the routes of the Belt and Road Initiative: Following customers and geopolitical relations," Growth and Change, Wiley Blackwell, vol. 54(1), pages 26-44, March.
    4. Shi, Yining, 2022. "Financial liberalization and house prices: Evidence from China," Journal of Banking & Finance, Elsevier, vol. 145(C).
    5. Xiaohui Yuan & Jiayan Yan, 2022. "Reverse Efficiency Spillovers from Host Country Banks to Foreign Banks: Evidence from Emerging Market Bank Subsidiaries in Developed Markets," Management International Review, Springer, vol. 62(6), pages 915-946, December.
    6. Laura Barbieri & Mariarosa Borroni & Andrea Lippi & Mariacristina Piva & Simone Rossi, 2021. "Determinants of Bank Branch Presence in Local Areas: A Comparison Between North and South of Italy," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 13(9), pages 1-15, August.
    7. Röell, Christiaan & Osabutey, Ellis & Rodgers, Peter & Arndt, Felix & Khan, Zaheer & Tarba, Shlomo, 2022. "Managing socio-political risk at the subnational level: Lessons from MNE subsidiaries in Indonesia," Journal of World Business, Elsevier, vol. 57(3).
    8. Jackowicz, Krzysztof & Kozłowski, Łukasz & Wnuczak, Paweł, 2021. "Which local markets do banks desert first? evidence from poland," Finance Research Letters, Elsevier, vol. 38(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Bayari, Celal, 2012. "The Patterns of Japanese FDI in Australia after the Lehman Shock: Perspectives of the Eclectic Paradigm and Institutional Economics," MPRA Paper 100875, University Library of Munich, Germany, revised 14 Aug 2012.
    2. John H. Dunning & Jeremy Clegg, 2011. "An Enlarged EU, Institutional Challenges and European Competitiveness," Chapters, in: Miroslav N. Jovanović (ed.), International Handbook on the Economics of Integration, Volume III, chapter 2, Edward Elgar Publishing.
    3. Sidney John Gray & Tony Kang & Yong Keun Yoo, 2013. "National Culture and International Differences in the Cost of Equity Capital," Management International Review, Springer, vol. 53(6), pages 899-916, December.
    4. Li, Tianchen, 2018. "Internationalisation and its determinants:A hierarchical approach," International Business Review, Elsevier, vol. 27(4), pages 867-876.
    5. Henry Wai‐Chung Yeung, 2009. "Transnational Corporations, Global Production Networks, and Urban and Regional Development: A Geographer's Perspective on Multinational Enterprises and the Global Economy," Growth and Change, Wiley Blackwell, vol. 40(2), pages 197-226, June.
    6. Saul Estrin & Delia Baghdasaryan & Klaus E. Meyer, 2009. "The Impact of Institutional and Human Resource Distance on International Entry Strategies," Journal of Management Studies, Wiley Blackwell, vol. 46(7), pages 1171-1196, November.
    7. Utz Schäffer & Matthias D. Mahlendorf & Jochen Rehring, 2014. "Does the Interactive Use of Headquarter Performance Measurement Systems in Foreign Subsidiaries Endanger the Potential to Profit from Local Relationships?," Australian Accounting Review, CPA Australia, vol. 24(1), pages 21-38, March.
    8. Gregorio Rius-Sorolla & Sofía Estelles-Miguel & Carlos Rueda-Armengot, 2020. "Multivariable Supplier Segmentation in Sustainable Supply Chain Management," Sustainability, MDPI, vol. 12(11), pages 1-16, June.
    9. Liu, Haiyun & Islam, Mollah Aminul & Khan, Muhammad Asif & Hossain, Md Ismail & Pervaiz, Khansa, 2020. "Does financial deepening attract foreign direct investment? Fresh evidence from panel threshold analysis," Research in International Business and Finance, Elsevier, vol. 53(C).
    10. Kerekes, Carrie B. & Williamson, Claudia R., 2008. "Unveiling de Soto's mystery: property rights, capital formation, and development," Journal of Institutional Economics, Cambridge University Press, vol. 4(3), pages 299-325, December.
    11. Laura E. Grube, 2015. "The role of culture in the persistence of traditional leadership: evidence from KwaZulu Natal, South Africa," Chapters, in: Laura E. Grube & Virgil Henry Storr (ed.), Culture and Economic Action, chapter 17, pages 375-397, Edward Elgar Publishing.
    12. Dierk Herzer & Philipp Hühne & Peter Nunnenkamp, 2014. "FDI and Income Inequality—Evidence from Latin American Economies," Review of Development Economics, Wiley Blackwell, vol. 18(4), pages 778-793, November.
    13. Daniel Alonso-Martínez & Nuria González-Álvarez & Mariano Nieto, 2021. "Does international patent collaboration have an effect on entrepreneurship?," Journal of International Entrepreneurship, Springer, vol. 19(4), pages 539-559, December.
    14. Richard Langlois, 2013. "The Institutional Revolution: A review essay," The Review of Austrian Economics, Springer;Society for the Development of Austrian Economics, vol. 26(4), pages 383-395, December.
    15. Gani, Azmat & Scrimgeour, Frank, 2014. "Modeling governance and water pollution using the institutional ecological economic framework," Economic Modelling, Elsevier, vol. 42(C), pages 363-372.
    16. Gianluca Marchi & Giuseppe Nardin, 2014. "Alleanze internazionali e mercati emergenti: l?esperienza del distretto ceramico di Sassuolo," ECONOMIA E SOCIET? REGIONALE, FrancoAngeli Editore, vol. 2014(2), pages 44-54.
    17. Luis Alfonso Dau & Aya S. Chacar & Marjorie A. Lyles & Jiatao Li, 2022. "Informal institutions and international business: Toward an integrative research agenda," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 53(6), pages 985-1010, August.
    18. Thi Xuan Thu Nguyen & Javier Revilla Diez, 2017. "Multinational enterprises and industrial spatial concentration patterns in the Red River Delta and Southeast Vietnam," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 59(1), pages 101-138, July.
    19. Jeffery S. McMullen & Dimo Dimov, 2013. "Time and the Entrepreneurial Journey: The Problems and Promise of Studying Entrepreneurship as a Process," Journal of Management Studies, Wiley Blackwell, vol. 50(8), pages 1481-1512, December.
    20. repec:mje:mjejnl:v:12:y:2017:i:2:p:25-70 is not listed on IDEAS
    21. Emil Evenhuis, 2017. "Institutional change in cities and regions: a path dependency approach," Cambridge Journal of Regions, Economy and Society, Cambridge Political Economy Society, vol. 10(3), pages 509-526.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:regstd:v:45:y:2011:i:6:p:733-754. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/CRES20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.