IDEAS home Printed from https://ideas.repec.org/p/zbw/wzbism/spii200403.html
   My bibliography  Save this paper

Changes in Germany's bank-based financial system: A varieties of capitalism perspective

Author

Listed:
  • Vitols, Sigurt

Abstract

Throughout the 20th century Germany's financial system has been dominated by banks. Recently, however, a number of efforts have been made to increase the role of markets within this bank-based financial system, including regulatory innovations, changes in corporate governance, and a reform of the pension system. This paper finds that, despite these changes, there are a surprising number of continuities in the structure of the financial system. The German financial system can therefore still be characterized as bank-based. An explanation for this based on the Varieties of Capitalism viewpoint is advanced, which emphasizes complementarities and continuities in household savings and investment behavior and in patterns of company sector demand for finance.

Suggested Citation

  • Vitols, Sigurt, 2004. "Changes in Germany's bank-based financial system: A varieties of capitalism perspective," Discussion Papers, Research Unit: Institutions, States, Markets SP II 2004-03, WZB Berlin Social Science Center.
  • Handle: RePEc:zbw:wzbism:spii200403
    as

    Download full text from publisher

    File URL: https://www.econstor.eu/bitstream/10419/51230/1/38574787X.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Lütz, Susanne, 1996. "The revival of the nation-state? Stock exchange regulation in an era of internationalized financial markets," MPIfG Discussion Paper 96/9, Max Planck Institute for the Study of Societies.
    2. Edwards,Jeremy & Fischer,Klaus, 1996. "Banks, Finance and Investment in Germany," Cambridge Books, Cambridge University Press, number 9780521566087, October.
    3. Steven Casper & Mark Lehrer & David Soskice, 1999. "Can High-technology Industries Prosper in Germany? Institutional Frameworks and the Evolution of the German Software and Biotechnology Industries," Industry and Innovation, Taylor & Francis Journals, vol. 6(1), pages 5-24.
    4. Acs,Zoltan J. & Audretsch,David B. (ed.), 1993. "Small Firms and Entrepreneurship," Cambridge Books, Cambridge University Press, number 9780521431156, October.
    5. Hall, Peter A. & Soskice, David (ed.), 2001. "Varieties of Capitalism: The Institutional Foundations of Comparative Advantage," OUP Catalogue, Oxford University Press, number 9780199247752, Decembrie.
    6. Casper, Steven, 1999. "National institutional frameworks and high-technology innovation in Germany: the case of biotechnology," Discussion Papers, Research Unit: Economic Change and Employment FS I 99-306, WZB Berlin Social Science Center.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Jürgens, Ulrich & Sablowski, Thomas, 2008. "Sektorale Innovationsprozesse und die Diskussion über deutsche Innovationsschwächen," Study / edition der Hans-Böckler-Stiftung, Hans-Böckler-Stiftung, Düsseldorf, volume 127, number 204.
    2. Valérie Revest & Sandro Sapio, 2008. "Financing Technology-Based Small Firms in Europe: a review of the empirical evidence," LEM Papers Series 2008/23, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
    3. James Buckley & David Howarth, 2010. "Internal Market: Gesture Politics? Explaining the EU's Response to the Financial Crisis," Journal of Common Market Studies, Wiley Blackwell, vol. 48(s1), pages 119-141, September.
    4. Labrinidis, George, 2018. "The roots of the Euro," MPRA Paper 86560, University Library of Munich, Germany.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Mark Lehrer, 2007. "Organizing knowledge spillovers when basic and applied research are interdependent: German biotechnology policy in historical perspective," The Journal of Technology Transfer, Springer, vol. 32(3), pages 277-296, June.
    2. Marc Goergen & Miguel Manjon & Luc Renneboog, 2008. "Is the German system of corporate governance converging towards the Anglo-American model?," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 12(1), pages 37-71, March.
    3. Kaiser, Robert & Prange, Heiko, 2004. "The reconfiguration of National Innovation Systems--the example of German biotechnology," Research Policy, Elsevier, vol. 33(3), pages 395-408, April.
    4. Casper, Steven, 1999. "High technology governance and institutional adaptiveness: do technology policies usefully promote commercial innovation within the German biotechnology industry?," Discussion Papers, Research Unit: Economic Change and Employment FS I 99-307, WZB Berlin Social Science Center.
    5. Nijkamp, P. & Stough, R. & Sahin, M., 2009. "Impact of social and human capital on business performance of migrant entrepreneurs - a comparative dutch-us study," Serie Research Memoranda 0017, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics.
    6. Henrekson, Magnus & Johansson, Dan, 1999. "Institutional Effects on the Evolution of the Size Distribution of Firms," Small Business Economics, Springer, vol. 12(1), pages 11-23, February.
    7. Bernadette Power & Gavin C Reid, 2003. "Turbulence, Flexibility and Performance of the Long-lived Small Firm," Tinbergen Institute Discussion Papers 03-039/3, Tinbergen Institute.
    8. Goergen, Marc & Manjon, Miguel C. & Renneboog, Luc, 2008. "Recent developments in German corporate governance," International Review of Law and Economics, Elsevier, vol. 28(3), pages 175-193, September.
    9. Silvia Teuber & Uschi Backes-Gellner, 2012. "How do companies adjust their organization to national institutions: evidence from matched-pair engineering companies," Economics of Education Working Paper Series 0082, University of Zurich, Department of Business Administration (IBW), revised Apr 2013.
    10. David B. Audretsch & Martin A. Carree & Adriaan J. Van Stel & A. Roy Thurik, 2002. "Impeded Industrial Restructuring: The Growth Penalty," Kyklos, Wiley Blackwell, vol. 55(1), pages 81-98.
    11. Niels Bosma & Sander Wennekers & F. Stam, 2010. "Intrapreneurship - An international study," Scales Research Reports H201005, EIM Business and Policy Research.
    12. Vitols, Sigurt, 1995. "German banks and the modernization of the small firm sector: long-term finance in comparative perspective," Discussion Papers, Research Unit: Economic Change and Employment FS I 95-309, WZB Berlin Social Science Center.
    13. Ronald Schettkat & Rongrong Sun, 2009. "Monetary policy and European unemployment," Oxford Review of Economic Policy, Oxford University Press, vol. 25(1), pages 94-108, Spring.
    14. Dorward, Andrew & Kydd, Jonathan & Poulton, Colin, 2004. "Market and Coordination Failures in Poor Rural Economies: Policy Implications for Agricultural and Rural Development," 2004 Inaugural Symposium, December 6-8, 2004, Nairobi, Kenya 9535, African Association of Agricultural Economists (AAAE).
    15. Sebastián Aparicio & Andrés Ramírez Hassan & Diego Fernando Gómez Sánchez, 2013. "Elección de ocupaciones que generen empleo usando modelos de elección discreta: Medellín Área Metropolitana 2009," Estudios Gerenciales, Universidad Icesi, December.
    16. Christel Lane & Daniela Lup, 2015. "Cooking under Fire: Managing Multilevel Tensions between Creativity and Innovation in Haute Cuisine," Industry and Innovation, Taylor & Francis Journals, vol. 22(8), pages 654-676, November.
    17. Bodnar, G.M. & Gebhart, G., 1998. "Derivatives Usage in Risk Management by US and German Non-Financial Firms: A Comparative Survey," Weiss Center Working Papers 98-03, Wharton School - Weiss Center for International Financial Research.
    18. Casper, Steven & Whitley, Richard, 2004. "Managing competences in entrepreneurial technology firms: a comparative institutional analysis of Germany, Sweden and the UK," Research Policy, Elsevier, vol. 33(1), pages 89-106, January.
    19. Faria, João Ricardo & Cuestas, Juan Carlos & Mourelle, Estefanía, 2010. "Entrepreneurship and unemployment: A nonlinear bidirectional causality?," Economic Modelling, Elsevier, vol. 27(5), pages 1282-1291, September.
    20. Mazumdar, Surajit, 2010. "Indian Capitalism: A Case that doesn’t Fit?," MPRA Paper 28162, University Library of Munich, Germany.

    More about this item

    Keywords

    Financial systems; venture capital; varieties of capitalism;
    All these keywords.

    JEL classification:

    • G3 - Financial Economics - - Corporate Finance and Governance
    • J5 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining
    • P5 - Political Economy and Comparative Economic Systems - - Comparative Economic Systems

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:zbw:wzbism:spii200403. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ZBW - Leibniz Information Centre for Economics (email available below). General contact details of provider: https://edirc.repec.org/data/wzbbbde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.