publication . Preprint . Article . Research . 2001

Distance and International Banking

Buch, Claudia M.;
Open Access
  • Published: 01 Apr 2001
Abstract
If the technological revolution which has taken place over the past decades has lowered information costs and if information costs increase in distance, distance should – ceteris paribus – become less important in determining international bank lending. We are using a dataset on assets and liabilities of commercial banks from five countries (France, Germany, Italy, UK, US) in up to 50 host countries for the years 1983 through 1998 to test this hypothesis. For the European banks, distance has remained of the same importance it used to have. For the US, a declining importance of distance was found. Several interpretations of these findings are discussed.
Subjects
free text keywords: cross-border banking, information costs, F21, G21, cross-border banking, Bankgeschäft, international, Internationale Bank, Informationskosten, Wirtschaftsgeographie, Schätzung, Frankreich, Italien, Deutschland, Großbritannien, Vereinigte Staaten, jel:F21, jel:G21, Economics, International banking, Technological change, Microeconomics, Information costs, Geography, Planning and Development, Development, ddc:330
Related Organizations

Engle, R.F., and C.W.J. Granger (1987). Co-Integration and Error Correction: Representation. Estimating and Testing. Econometrica 55: 251-276.

Graph 1 - Distance and International Banking Activities, 1983-1998 Graph 3 - Composition of Borrowers on International Capital Markets, 1985- 2000

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publication . Preprint . Article . Research . 2001

Distance and International Banking

Buch, Claudia M.;