The choice of the form of representation in multinational banking: Evidence from Spain

Abstract

This paper investigates foreign direct investment in the banking sector. The attention has been addressed to test the importance of OLI advantages as the determinants of the bank's decision to invest in foreign locations. Nevertheless, since banks can expand their activities abroad through different organizational forms that imply different levels of foreign involvement, the issue of the form of representation has been tackled. The results show the importance of OLI advantages in the form of representation in multinational banking.