German Bank Lending to Industrial and Non-Industrial Countries: Driven by Fundamentals or Different Treatment

56 Pages Posted: 31 Aug 2005

See all articles by Thorsten Nestmann

Thorsten Nestmann

University of Mainz - Department of Economics

Date Written: August 2005

Abstract

This paper shows that the substantial disparity in German bank lending towards industrial and non-industrial (Non-IC) countries is largely explained by differences in countries' endowments and only to a minor extent by German banks' different treatment of these country groups. This is demonstrated by applying a decomposition technique to an augmented gravity model that is estimated for German foreign lending using a new micro panel data-set individual claims from the Deutsche Bundesbank covering the period from 1996 to 2002.

Keywords: German bank lending, gravity models, Oaxaca decomposition analysis

JEL Classification: F30, F34, G21

Suggested Citation

Nestmann, Thorsten, German Bank Lending to Industrial and Non-Industrial Countries: Driven by Fundamentals or Different Treatment (August 2005). Available at SSRN: https://ssrn.com/abstract=791444 or http://dx.doi.org/10.2139/ssrn.791444

Thorsten Nestmann (Contact Author)

University of Mainz - Department of Economics ( email )

Chair of Corporate Finance
D-55099 Mainz, 55128
Germany

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