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dc.contributor.authorBuch, Claudia M.en_US
dc.contributor.authorKoch, Cathérine Tahmeeen_US
dc.contributor.authorKötter, Michaelen_US
dc.date.accessioned2010-01-27en_US
dc.date.accessioned2010-05-14T08:23:11Z-
dc.date.available2010-05-14T08:23:11Z-
dc.date.issued2009en_US
dc.identifier.urihttp://hdl.handle.net/10419/30609-
dc.description.abstractModern trade theory emphasizes firm-level productivity differentials to explain the cross-border activities of non-financial firms. This study tests whether a productivity pecking order also determines international banking activities. Using a novel dataset that contains all German banks’ international activities, we estimate the ordered probability of a presence abroad (extensive margin) and the volume of international assets (intensive margin). Methodologically, we enrich the conventional Heckman selection model to account for the self-selection of banks into different modes of foreign activities using an ordered probit. Four main findings emerge. First, similar to results for non-financial firms, a productivity pecking order drives bank internationalization. Second, only a few non-financial firms engage in international trade, but many banks hold international assets, and only a few large banks engage in foreign direct investment. Third, in addition to productivity, risk factors matter for international banking. Fourth, gravity-type variables have an important impact on international banking activities.en_US
dc.language.isoengen_US
dc.publisherCESifo Münchenen_US
dc.relation.ispartofseriesCESifo working paper 2891en_US
dc.subject.jelF30en_US
dc.subject.jelG21en_US
dc.subject.ddc330en_US
dc.titleMargins of international banking: is there a productivity Pecking order in banking, too?en_US
dc.typeWorking Paperen_US
dc.identifier.ppn61726192Xen_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungen-
Appears in Collections:CESifo Working Papers, CESifo Group Munich

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