The law of proportionate effect and OECD bank sectors
AbstractThe paper investigates the growth dynamics of the bank sectors in the OECD area over the period 1985-1994 and examines whether the structural financial reforms of the late 1980s have affected their growth path. Based on a test of Gibrat's law of proportionate effect, it is found that the 1985-89 period was characterized by size convergence, implying that smaller bank sectors were expanding more rapidly. However, in the 1990-1994 period the pattern reversed to proportionate growth. The analysis of the determinants of bank market growth reveals that macroeconomic growth, operational bank efficiency, credit quality, and capitalization are the main drivers of bank industry growth.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by Taylor & Francis Journals in its journal Applied Economics.
Volume (Year): 33 (2001)
Issue (Month): 4 ()
Contact details of provider:
Web page: http://www.tandfonline.com/RAEC20
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Stefano Bianchini & Giulio Bottazzi & Federico Tamagni, 2014. "What does (or does not) determine persistent corporate high-growth ?," LEM Papers Series 2014/11, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
- Roy Thurik & Enrico Santarelli & David Audretsch & Luuk Klomp, 2002.
"Gibrat's Law: Are the Services Different?,"
Scales Research Reports
H200201, EIM Business and Policy Research.
- Audretsch, D.B. & Klomp, L. & Thurik, A.R., 2002. "Gibrat's Law: are the services different?," ERIM Report Series Research in Management ERS-2002-04-STR, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus Uni.
- Daunfeldt, Sven-Olov & Halvarsson, Daniel, 2012. "Are high-growth firms one-hit wonders? Evidence from Sweden," HUI Working Papers 73, HUI Research.
- Matteo Richiardi, 2004.
"Generalizing Gibrat: Reasonable Multiplicative Models of Firm Dynamics,"
Journal of Artificial Societies and Social Simulation,
Journal of Artificial Societies and Social Simulation, vol. 7(1), pages 2.
- Matteo Richiardi, 2003. "Generalizing Gibrat. Reasonable Multiplicative Models of Firm Dynamics," Industrial Organization 0304004, EconWPA.
- Georgios Fotopoulos & Ioannis Giotopoulos, 2010. "Gibrat’s law and persistence of growth in Greek manufacturing," Small Business Economics, Springer, vol. 35(2), pages 191-202, September.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Michael McNulty).
If references are entirely missing, you can add them using this form.