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Do firm-bank relationships affect firms' internationalization?

Author

Listed:
  • Riccardo De Bonis

    () (Bank of Italy)

  • Giovanni Ferri

    () (LUMSA)

  • Zeno Rotondi

    () (Unicredit Group)

Abstract

The goal of this paper is to investigate the link between the length of a firm-bank relationship and firm's internationalization. The analysis is carried out on matched firm-bank micro-data from a survey of Italian enterprises from 1998 to 2003. We obtain two main results. First, a longer relationship with the main bank fosters firms' foreign direct investment (FDI) while it does not affect the export status of the enterprises not engaging in FDI. Second, the probability of a firm undertaking FDI further increases if its main bank is itself internationalized by holding foreign subsidiaries.

Suggested Citation

  • Riccardo De Bonis & Giovanni Ferri & Zeno Rotondi, 2014. "Do firm-bank relationships affect firms' internationalization?," Questioni di Economia e Finanza (Occasional Papers) 251, Bank of Italy, Economic Research and International Relations Area.
  • Handle: RePEc:bdi:opques:qef_251_14
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    Cited by:

    1. repec:spr:italej:v:4:y:2018:i:1:d:10.1007_s40797-018-0072-8 is not listed on IDEAS
    2. Steven Poelhekke, 2016. "Financial Globalization and Foreign Direct Investment," Tinbergen Institute Discussion Papers 16-098/VIII, Tinbergen Institute.
    3. Matteo Bugamelli & Silvia Fabiani & Stefano Federico & Alberto Felettigh & Claire Giordano & Andrea Linarello, 2018. "Back on Track? A Macro–Micro Narrative of Italian Exports," Italian Economic Journal: A Continuation of Rivista Italiana degli Economisti and Giornale degli Economisti, Springer;Società Italiana degli Economisti (Italian Economic Association), vol. 4(1), pages 1-31, March.
    4. repec:ibn:ibrjnl:v:10:y:2017:i:6:p:212-226 is not listed on IDEAS
    5. Giovanni Ferri & Pierluigi Murro, 2016. "A Credit Crunch Behind the Great Trade Collapse? Micro Evidence From Europe," CERBE Working Papers wpC10, CERBE Center for Relationship Banking and Economics.

    More about this item

    Keywords

    internationalization; foreign direct investments; export; external finance; firm-bank relationships; bank internationalization mode;

    JEL classification:

    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
    • F10 - International Economics - - Trade - - - General
    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages

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