Paper #360

Título:

The timing of foreign direct investment under uncertainty: Evidence from the Spanish banking sector

Autor:

Josep Garcia Blandón

Fecha:

Marzo 1999

Resumen:

This paper investigates the timing of foreign direct investment (FDI) in the banking sector. The importance of this issue would arise from the existence of differential benefits associated to be the first entrant in a foreign location. Nevertheless, when uncertainty is considered, the existence of some Ownership-Location-Internalization (OLI) advantages can make FDI less reversible and/or more delayable and therefore it may be optimal for the firm to delay the investment until the uncertainty is resolved. In this paper, the nature of OLI advantages in the banking sector has been examined in order to propose a prognostic model of the timing of foreign direct investment. The model is then tested for the Spanish case using duration analysis.

Palabras clave:

OLI advantages, foreign banking entry, survival analysis

Códigos JEL:

G21

Área de investigación:

Finanzas y Contabilidad

Publicado en:

Journal of Economic Behavior & Organization, 45 (2001), 2, pp. 213-224

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