Cost of capital and Australia's banking investment abroad

Fariborz Moshirian and Toan Pham

Applied Financial Economics, 1999, vol. 9, issue 3, 295-303

Abstract: As foreign direct investment in banking is part of trade in financial services and as the prospects of Australia's trade in financial services to Asian countries has increased, this paper intends to analyse and measure Australia's foreign direct investment in banking. The paper distinguishes between banks' activities abroad and investors' (banks and nonbanks) FDI in banking. The flow model of FDI in banking based on the eclectic theory of FDI identifies those factors which are most relevant to financial services as opposed to manufacturing. The empirical results of this study indicate that the relative cost of capital, the size of the foreign banking market, the exchange rate, relative economic growth, FDI in manufacturing and Australia's banks' foreign assets are the major determinants of her FDI in banking.

Date: 1999
References: View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://www.tandfonline.com/doi/abs/10.1080/096031099332375 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:taf:apfiec:v:9:y:1999:i:3:p:295-303

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/RAFE20

DOI: 10.1080/096031099332375

Access Statistics for this article

Applied Financial Economics is currently edited by Anita Phillips

More articles in Applied Financial Economics from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().