The impact of banking deregulation on inbound foreign direct investment: Transaction-level evidence from the United States

• 成果类型: Article
• 署名作者: Kandilov, Ivan T.; Leblebicioglu, Asli; Petkova, Neviana
• 署名单位: North Carolina State University; University of Texas System; University of Texas Dallas; United States Department of the Treasury
• 刊物名称: JOURNAL OF INTERNATIONAL ECONOMICS
• ISSN/ISSBN: 0022-1996
• DOI: 10.1016/j.jinteco.2016.02.008
• 发表日期: 2016
• 页码: 138-159
• 关键词: foreign direct investment; Banking deregulation; External finance dependence

摘要

We evaluate the effects of state-level banking deregulation that resulted in improved access to cheaper local finance on foreign firms investing in the U.S. We provide direct, micro-level evidence from U.S. inbound foreign direct investment transactions showing that interstate banking, but not intrastate branching, deregulation increased the number of transactions, reduced the average transaction value, and boosted overall investment by foreign multinationals. We also show that lower cost of local credit and greater local bank competition in each state, following the interstate banking deregulation, are potential mechanisms that stimulated FDI activity. Finally, we demonstrate that after the adoption of the interstate banking deregulation, both the number and the average value of transactions increased in industries that are more dependent on external finance relative to industries that are less dependent (c) 2016 Elsevier B.V. All rights reserved.