Impact of Foreign-Owned Banks on Economic Development

  • Małgorzata Iwanicz-Drozdowska
  • Paola Bongini
  • Paweł Smaga
  • Bartosz Witkowski
Part of the Studies in Economic Transition book series (SET)


This chapter reviews the theoretical and empirical literature which links economic growth to the role and characteristics of the financial system. Among these characteristics, relevant to CESEE countries, stand the presence of foreign-owned banks and their activities in the host market. The chapter starts with a review of the main findings of the finance and growth theory and empirics; it then concentrates on specific findings for our group of countries. It finally reports the results of a series of studies targeting the role of foreign-owned banks in influencing the economic path of host countries.


Economic development Economic growth Host country Transition Foreign-owned bank 


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Copyright information

© The Author(s) 2018

Authors and Affiliations

  • Małgorzata Iwanicz-Drozdowska
    • 1
  • Paola Bongini
    • 2
  • Paweł Smaga
    • 1
  • Bartosz Witkowski
    • 1
  1. 1.SGH Warsaw School of EconomicsWarsawPoland
  2. 2.University of Milano-BicoccaMilanItaly

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