@techreport{Buch2004versus,
abstract = {The choice between foreign direct investment (FDI) and exports has been a recurrent
theme in the literature on international trade, yet few studies have analysed this choice
at the level of the individual firm. This paper uses a new dataset to study the FDI-versus-exports decision for banks. We use data on the foreign direct investment stocks
and the cross-border provision of financial services of German banks for the period
1997-2000 to describe the regional pattern of banks' international activities. We find
that country- and bank-specific variables capturing size have a major impact on banks'
foreign activities. The results are consistent with the hypothesis that the realisation of
economies of scale and the provision of trade-related finance shape globalisation
patterns. Greater cultural and geographical distance, by contrast, potentially limit the
international expansion of banks. Our results also suggest that FDI and cross-border
services are complements rather than substitutes.},
author = {Claudia M. Buch and Alexander Lipponer},
copyright = {http://www.econstor.eu/dspace/Nutzungsbedingungen},
keywords = {F21; F0; 330; international banking; gravity equations; foreign direct investment; cross-border financial services; Bank; Globalisierung; Bankgesch\"{a}ft; international; Direktinvestition; Deutschland; Welt},
language = {eng},
number = {2004,05},
title = {FDI versus cross-border financial services: The globalisation of German banks},
type = {Discussion paper Series 1 / Volkswirtschaftliches Forschungszentrum der Deutschen Bundesbank},
url = {http://hdl.handle.net/10419/19472},
year = {2004}
}
