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Historical Causes of Regional Differences in the Predominance of Cooperative Banks – An Empirical Analysis for Germany

Author

Listed:
  • Bossler Mario

    (Institute for Employment Research, Department of Establishments and Employment, Regensburger Str. 104, 90478 Nuremberg, phone: +49 – 911– 179– 3043)

  • Schild Christopher-Johannes

    (Friedrich-Alexander-University Erlangen-Nuremberg, Department of Economics, Chair of Social Policy, and Institute for Employment Research, Research Data Centre)

Abstract

The share of credit cooperatives in retail banking varies substantially across German regions. Institutional economic theory and anecdotal evidence from the history of the German cooperative sector provide theoretical explanations for these differences. For our analysis we link administrative bank data with historical as well as contemporary regional characteristics. In a county-level regression, we find evidence for both historical institutional and current economic characteristics explaining the degree of credit co­operatives’ activity. Of the historical determinants, differences in the rules of farmland inheritance and 19th century German state borders are strong explanatory factors.

Suggested Citation

  • Bossler Mario & Schild Christopher-Johannes, 2014. "Historical Causes of Regional Differences in the Predominance of Cooperative Banks – An Empirical Analysis for Germany," Zeitschrift für das gesamte Genossenschaftswesen, De Gruyter, vol. 64(s1), pages 3-18, December.
    • Handle: RePEc:bpj:zfgewe:v:64:y:2014:i:s1:p:3-18:n:2
    DOI: 10.1515/zfgg-2014-s102
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