Do Reforms in Transition Economies Affect Foreign Bank Entry?

20 Pages Posted: 30 Dec 2004

See all articles by Robert Lensink

Robert Lensink

University of Groningen - Department of Economics, Econometrics and Finance; Wageningen UR - Development Economics Group

Jakob de Haan

University of Groningen - Faculty of Economics and Business; De Nederlandsche Bank; CESifo (Center for Economic Studies and Ifo Institute)

Abstract

Using a newly developed database for eight transition economies, this paper examines whether reforms and political freedom are important for foreign bank entry. We provide evidence that foreign bank entry positively responds to reform measures. We also find some support for the importance of political freedom. Our estimates suggest that economic reform affects foreign bank entry by enhancing the efficiency of the financial sector and by stimulating domestic investments.

Suggested Citation

Lensink, Robert and de Haan, Jakob, Do Reforms in Transition Economies Affect Foreign Bank Entry?. International Review of Finance, Vol. 3, pp. 213-232, September 2002, Available at SSRN: https://ssrn.com/abstract=639767

Robert Lensink (Contact Author)

University of Groningen - Department of Economics, Econometrics and Finance ( email )

P.O. Box 800
9700 AH Groningen
Netherlands

Wageningen UR - Development Economics Group ( email )

Hollandseweg 1
WAGENINGEN, 6706 KN
Netherlands

Jakob De Haan

University of Groningen - Faculty of Economics and Business ( email )

PO Box 800
Groningen, 9700 AV
Netherlands
+31 0 50 3633706 (Fax)

De Nederlandsche Bank ( email )

P.O. Box 98
Amsterdam, 1000 AB
Netherlands

CESifo (Center for Economic Studies and Ifo Institute)

Poschinger Str. 5
Munich, DE-81679
Germany

HOME PAGE: http://www.CESifo.de

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