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German bank lending to industrial and non-industrial countries: driven by fundamentals or different treatment?

  • Nestmann, Thorsten
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    This paper shows that the substantial disparity in German bank lending towards industrial (IC) and non-industrial (Non-IC) countries is largely explained by differences in countries' endowments and only to a minor extent by German banks' different treatment of these country groups. This is demonstrated by applying a decomposition technique to an augmented gravity model that is estimated for German foreign lending using a new micro panel data-set on individual claims from the Deutsche Bundesbank covering the period from 1996 to 2002.

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    Paper provided by Deutsche Bundesbank, Research Centre in its series Discussion Paper Series 2: Banking and Financial Studies with number 2005,08.

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    Date of creation: 2005
    Date of revision:
    Handle: RePEc:zbw:bubdp2:4263
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