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International Labor Migration And Foreign Bank Penetration In Developing Economies

Author

Listed:
  • RONG MA

    (Department of Economics, Western Michigan University, USA)

  • SUSAN POZO

    (Department of Economics, Western Michigan University, USA)

Abstract

This paper examines the impact of international labor migration on foreign bank presence in 30 Asian and Latin American countries. While it is well established that social and economic characteristics of the host economy influence entry by foreign banks, we test whether social and economic linkages between bank-host and bank-origin economies influence foreign bank activity. In particular, we consider whether international migration from bank-host to the bank-origin countries affects foreign bank activity. Panel Tobit models find that international migration promotes foreign bank presence. Banks originating in industrialized nations with large immigrant populations tend to expand into migrant-source developing countries.

Suggested Citation

  • Rong Ma & Susan Pozo, 2012. "International Labor Migration And Foreign Bank Penetration In Developing Economies," Journal of International Commerce, Economics and Policy (JICEP), World Scientific Publishing Co. Pte. Ltd., vol. 3(01), pages 1-17.
    • Handle: RePEc:wsi:jicepx:v:03:y:2012:i:01:n:s1793993312400042
    DOI: 10.1142/S1793993312400042
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    References listed on IDEAS

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    1. Dario Focarelli & Alberto Franco Pozzolo, 2000. "The Determinants of Cross-Border Bank Shareholdings; an Analysis with Bank-Level Data from OECD Countries," Temi di discussione (Economic working papers) 381, Bank of Italy, Economic Research and International Relations Area.
    2. Gupta, Sanjeev & Pattillo, Catherine A. & Wagh, Smita, 2009. "Effect of Remittances on Poverty and Financial Development in Sub-Saharan Africa," World Development, Elsevier, vol. 37(1), pages 104-115, January.
    3. Aneta Hryckiewicz & Oskar Kowalewski, 2008. "The Economic Determinants and Engagement Models of Foreign Banks in Central Europe," NBP Working Papers 50, Narodowy Bank Polski.
    4. Marco Arena & Carmen Reinhart & Francisco Vázquez, 2006. "The Lending Channel in Emerging Economics: Are Foreign Banks Different?," NBER Working Papers 12340, National Bureau of Economic Research, Inc.
    5. Stijn Claessens & Neeltje Van Horen, 2014. "Location Decisions of Foreign Banks and Competitor Remoteness," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 46(1), pages 145-170, February.
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    Cited by:

    1. Juan David González-Ruiz & Camila Múnera-Sierra & Nini Johana Marín-Rodríguez, 2024. "Perspectives on Migration and Financial Markets Research," JRFM, MDPI, vol. 17(7), pages 1-20, June.

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    More about this item

    Keywords

    International banks; international migration; FDI; G15; F22; F21;
    All these keywords.

    JEL classification:

    • G15 - Financial Economics - - General Financial Markets - - - International Financial Markets
    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements

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