Abstract
In this paper we use new statistics on Foreign Direct Investment (FDI) in Transitional Economies (TEs) to analyze the issue of foreign ownership in the banking sector. We find that foreign investment is associated with higher profitability; however, a substantial foreign ownership is necessary if there is to be a positive effect on cost efficiency. We also analyze the determinants of FDI location choices in TEs providing new empirical evidence, and distinguishing among different levels of foreign partnership.
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Papi, L., Revoltella, D. (2003). Foreign Direct Investment in the Banking Sector: Experiences and Lessons from CEECs. In: Colombo, E., Driffill, J. (eds) The Role of Financial Markets in the Transition Process. Contributions to Economics. Physica, Heidelberg. https://doi.org/10.1007/978-3-642-57372-9_7
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DOI: https://doi.org/10.1007/978-3-642-57372-9_7
Publisher Name: Physica, Heidelberg
Print ISBN: 978-3-7908-0004-3
Online ISBN: 978-3-642-57372-9
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