• ISSN: 2010-023X (Print)
    • Abbreviated Title: Int. J. Trade, Economics and Financ.
    • Frequency: Bimonthly
    • DOI: 10.18178/IJTEF
    • Editor-in-Chief: Prof.Tung-Zong (Donald) Chang
    • Executive Editor: Ms. Cherry L. Chen
    • Abstracting/ Indexing:  ProQuest, Crossref, Electronic Journals Library , EBSCO, and Ulrich's Periodicals Directory
    • E-mail: ijtef@ejournal.net
IJTEF 2017 Vol.8(6): 258-262 ISSN: 2010-023X
DOI: 10.18178/ijtef.2017.8.6.575

Does Size Matter? Economies of Scale in the Credit Union Industry

Su-Jane Chen
Abstract—This study employs a paired difference approach to explore economies of scale in the credit union industry. Tests performed on aggregate credit union data strongly support the existence of scale economies. Empirical results suggest that the larger the credit union size is, the more efficiently it operates in terms of operating costs as a percentage of both total assets and operating income. Moreover, economies of scale evidenced in this research have become more pronounced post 2008 financial crisis, supporting the notion that they change over time. This documented enhancement in scale economies provides the rationale for the industry’s proliferating consolidations via merger and acquisition activities.

Index Terms—Credit unions, economies of scale, operational efficiency.

Su-Jane Chen is with Metropolitan State University of Denver, CO 80217 USA (e-mail: chens@msudenver.edu).


Cite: Su-Jane Chen, "Does Size Matter? Economies of Scale in the Credit Union Industry," International Journal of Trade, Economics and Finance vol.8, no.6, pp. 258-262, 2017.

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