International Journal of Economics and Business Administration
Articles Information
International Journal of Economics and Business Administration, Vol.1, No.3, Nov. 2015, Pub. Date: Oct. 19, 2015
Applied Panzar-Rosse Model to Albanian Banking Sector
Pages: 128-133 Views: 1553 Downloads: 731
[01] Arjan Tushaj, Department of Economics, Faculty of Business Administration and Economics, University of Tirana, Tirana, Albania.
[02] Valentina Sinaj, Department of Informatics, Math and Statistics, Faculty of Business Administration and Economics, University of Tirana, Tirana, Albania.
Structural changes of Albanian banking sector over the years have reflected their effects on the banking concentration and behaviour. The article examines the banking competition using Panzar–Rosse model to panel datasets of Albanian banking sector during 2005-2011. Applied results on the banking competition using H statistic of PR confirmed the monopolistic competition structure. The comparative statics demonstrated that the Albanian banking sector was lightly comparable with the EU countries and more competitive than several Balkan countries. H statistic confirmed the frail linkage among the banking competition and concentration meanwhile it proved the occurrence of contestability in the banking market. This article highlighted no robust support linking to the assessment of banking competition through the traditional approaches.
Banking Competition, Market Structure, Panzar-Rosse Model
[01] Angelini, P., Cetorelli, N. (2000), "Bank Competition and Regulatory Reform: The Case of the Italian Banking Industry", Bank of Italy Temi di discussione, Nr. 380.
[02] Bank of Albania, Banking Supervision Annual Report: 1998–2014.
[03] Bank of Albania, Financial Stability Report: 2007–2014.
[04] Bank of Albania, Annual Report: 1993–2014.
[05] Bikker, J. A., Haaf, K. (2002), "Competition, Concentration and Their Relationship: An Empirical Analysis of the Banking Industry," Journal of Banking and Finance 26, 2191- 2214.
[06] Bikker, J. A., Groeneveld, J. M. (2000), “Competition and Concentration in the EU Banking Industry”, Kredit und Kapital 33, 62-98.
[07] Bikker, J. A, Shaffer, S., Spierdijk, L. (2009), “Assessing competition with the Panzar-Rosse model: The role of scale, costs, and equilibrium”, DNB Working Papers 225, Netherlands Central Bank, Research Department.
[08] Boutillier, M., Gaudin, J., Grandperrin, S. (2004), “La situation concurrentielle des principaux secteurs bancaires Europeens entre 1993 et 2000: Quels enseignements pour la future structure des marches financiers issue de l‘uem”, Fondation Banque de France, Working Papers, 22 February.
[09] Bresnahan, T. F. (1982), "The oligopoly solution concept is identified", Economics Letters, 10, 87-92.
[10] Bresnahan, T. F. (1989), “Studies of Industries With Market Power”, In Handbook of Industrial Organization, Volume II, edited by Richard Schmalensee and Robert D. Willig, Chapter 17. Amsterdam: Elsevier Science Publishers.
[11] Canhoto, A. (2004), “Portuguese banking: A structural model of competition in the deposits market”, Review of Financial Economics, 13, 41-63.
[12] Casu, B., Girardone, C. (2006), “Bank Competition, Concentration and Efficiency in the Single European Market”, The Manchester School, Vol. 74 No. 4, pp. 441- 468.
[13] Claessens, S., Laeven, L. (2003), “What drives bank competition? Some international evidence”, Paper for presentation at the Conference on Bank Concentration and Competitions, April 3-4, 2003, The World Bank.
[14] Claessens, S., Laeven, L. (2004), “What drives bank competition? Some international evidence”, Journal of Money, Credit and Banking 36, 563-583.
[15] Coccorese, P. (1998), “Assessing the Competitive Conditions in the Italian Banking System: Some Empirical Evidence”, BNL Quarterly Review 205, 171-191.
[16] De Bandt, O., Davis, P. (2000), “Competition, contestability and market structure in European banking sectors on the eve of EMU”, Journal of Banking and Finance, 24, 1045-1066.
[17] European Bank for Reconstruction and Development, 2014, Transition Report 2014: Innovation in Transition.
[18] Goddard, J. A, Wilson, J. O. S. (2009), “Competition in banking: a dis-equilibrium approach”, Journal of Banking and Finance, 2009, 33, 2282-2292.
[19] Goddard, J. A., Wilson, J. O. S. (2006), “Measuring competition in banking: A disequilibrium approach”, Working Paper, University of Wales, Bangor.
[20] Iwata, G. (1974), "Measurement of Conjectural Variations in Oligopoly", Econometrica 42,947-966.
[21] Koutsomanoli-Fillipaki, N., Staikouras, C. (2004), “Competition in the new European banking landscape”, Paper presented at the Money, Macro and Finance 36th Annual Conference, Cass Business School, London, September 6th -8th.
[22] Lau, L. (1982), “On identifying the degree of competitiveness from industry price and output data”, Economics Letters, 10, 93-99.
[23] Molyneux, P., Lloyd-Williams, D. M, Thornton, J. (1994), “Competitive conditions in European banking”, Journal of Banking and Finance, 18, 445-459.
[24] Neven, D., Röller, L. H. (1999), “An aggregate structural model of competition in the European banking industry”, International Journal of Industrial Organisation, 17, 1059-1074.
[25] Note, S. (2006), “Competition in the Albanian banking system”, Working paper, January 2006.
[26] Panzar, J. C., Rosse, J. N. (1987), “Testing for ‘Monopoly’ Equilibrium”, Journal of Industrial Economics 35, 443-456.
[27] Shaffer, S. (1982), “A Non-Structural Test for Competition in Financial Markets, In Bank Structure and Competition”, Conference Proceedings, Federal Reserve Bank of Chicago, pp.225-243.
[28] Shaffer, S. (1989), “Competition in the U.S. Banking Industry”, Economics Letters 29, 321-323.
[29] Shaffer, S. (1993), “A Test of Competition in Canadian Banking”, Journal of Money, Credit, and Banking 25, 49-61.
[30] Shaffer, S., DiSalvo, J. (1994), “Conduct in a banking duopoly”, Journal of Banking and Finance, 18, 1063–1082, 1994.
[31] Schaeck, K., Cihák, M., Wolfe, M. (2009), “Are more competitive banking systems more stable?”, Journal of Money, Credit, and Banking, 41, 711-734.
[32] Suominen, M. (1994), “Measuring Competition in Banking: A Two-Product Model”, Scandinavian Journal of Economics 96, 95-110, 1994.
[33] Toolsema, L. (2002), “Competition in the Dutch consumer credit market”, Journal of Banking and Finance, 26, 2215-2229.
[34] Weill, L. (2004), “On the relationship between competition and efficiency in the EU banking sectors”, Kredit und Kapital, 37, 329−352.
[35] Weill, L. (2011), “Bank competition in the EU: How has it evolved?” September 2011, Working paper, IFS.
MA 02210, USA
AIS is an academia-oriented and non-commercial institute aiming at providing users with a way to quickly and easily get the academic and scientific information.
Copyright © 2014 - 2017 American Institute of Science except certain content provided by third parties.