摘要：Banks often concentrate their foreign direct investment (FDI) in certain
countries. This clustering of activities could reflect either the attractiveness
of a particular country or agglomeration effects. To find out which of the two
phenomena dominates, we need to control for country-specific factors. We use new
bank-level data on German banks’ FDI for the 1996– 2003 period.We test whether
the presence of other banks has a positive impact on the entry of new banks.
Once we control for the attractiveness of a country through fixed effects, the
negative impact of competition dominates. Hence, pure clustering effects are
rather unimportant.
