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The law of proportionate effect of OECD bank sectors

(2001) APPLIED ECONOMICS. 33(4). p.539-546
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Abstract
The 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.

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Chicago
Vander Vennet, Rudi. 2001. “The Law of Proportionate Effect of OECD Bank Sectors.” Applied Economics 33 (4): 539–546.
APA
Vander Vennet, R. (2001). The law of proportionate effect of OECD bank sectors. APPLIED ECONOMICS, 33(4), 539–546.
Vancouver
1.
Vander Vennet R. The law of proportionate effect of OECD bank sectors. APPLIED ECONOMICS. 2001;33(4):539–46.
MLA
Vander Vennet, Rudi. “The Law of Proportionate Effect of OECD Bank Sectors.” APPLIED ECONOMICS 33.4 (2001): 539–546. Print.
@article{145333,
  abstract     = {The 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.},
  author       = {Vander Vennet, Rudi},
  issn         = {0003-6846},
  journal      = {APPLIED ECONOMICS},
  language     = {eng},
  number       = {4},
  pages        = {539--546},
  title        = {The law of proportionate effect of OECD bank sectors},
  volume       = {33},
  year         = {2001},
}

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