diff --git a/mercurial/hg.py b/mercurial/hg.py
--- a/mercurial/hg.py
+++ b/mercurial/hg.py
@@ -263,6 +263,8 @@ def clone(ui, peeropts, source, dest=Non
     dest = util.urllocalpath(dest)
     source = util.urllocalpath(source)
 
+    if not dest:
+        raise util.Abort(_("empty destination path is not valid"))
     if os.path.exists(dest):
         if not os.path.isdir(dest):
             raise util.Abort(_("destination '%s' already exists") % dest)
diff --git a/mercurial/localrepo.py b/mercurial/localrepo.py
--- a/mercurial/localrepo.py
+++ b/mercurial/localrepo.py
@@ -60,8 +60,8 @@ class localrepository(repo.repository):
 
         if not os.path.isdir(self.path):
             if create:
-                if not os.path.exists(path):
-                    util.makedirs(path)
+                if not os.path.exists(self.root):
+                    util.makedirs(self.root)
                 util.makedir(self.path, notindexed=True)
                 requirements = self._baserequirements(create)
                 if self.ui.configbool('format', 'usestore', True):
diff --git a/tests/test-bundle.t b/tests/test-bundle.t
--- a/tests/test-bundle.t
+++ b/tests/test-bundle.t
@@ -420,7 +420,7 @@ When cloning from a non-copiable reposit
 recurse infinitely (issue 2528)
 
   $ hg clone full.hg ''
-  abort: * (glob)
+  abort: empty destination path is not valid
   [255]
 
 test for http://mercurial.selenic.com/bts/issue216
diff --git a/tests/test-clone.t b/tests/test-clone.t
--- a/tests/test-clone.t
+++ b/tests/test-clone.t
@@ -43,7 +43,7 @@ Default operation:
 Invalid dest '' must abort:
 
   $ hg clone . ''
-  abort: * (glob)
+  abort: empty destination path is not valid
   [255]
 
 No update, with debug option:
@@ -112,7 +112,7 @@ Use --pull:
 Invalid dest '' with --pull must abort (issue2528):
 
   $ hg clone --pull a ''
-  abort: * (glob)
+  abort: empty destination path is not valid
   [255]
 
 Clone to '.':