Scale and Scope Economies in Rural Banking: Evidence from Bangladesh
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Publisher:Ohio State University. Department of Agricultural, Environmental, and Development Economics
Series/Report no.:Ohio State University. Department of Agricultural Economics and Rural Sociology. ESO (Economics and Sociology Occasional Paper). No. 1480
A system of cost equations is estimated for rural bank branches in Bangladesh using two different approaches to measure bank costs and output. There were significant differences in results obtained under the production and intermediation approaches. The average bank branch displayed decreasing returns to scale under the intermediation approach.