Do Reforms in Transition Economies Affect Foreign Bank Entry?

Robert Lensink and Jakob de Haan

International Review of Finance, 2002, vol. 3, issue 3‐4, 213-232

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.

Date: 2002
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https://doi.org/10.1111/j.1369-412X.2002.00039.x

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