Vol 1, No 3 (2013)
Comparative Approach of Competitiveness of Iranian Banking Sector
Mohammad Nabi Shahiki Tash, Yaghoub Abdi
Abstract
The aim of this paper is present a comparative approach of competitiveness condition in the banking system of Iran by use of two different New Empirical Industrial Organization (NEIO) approaches (Panzar-Rosse and Hall-Roeger models) over the years 2003-2011 for P-R model, and 2007-2011 for other one. The result of calculated H-statistics shows that, the Iranian banking sector’s market structure has a monopolistic situation. In the case of Hall-Roeger model we calculate the Lerner Index for 18 banks, The results for Lerner index show that for 15 banks are P > MC and for rest of them is P < MC. For comparative purposes the obtained results between the Panzar-Rosse model and Hall-Roeger model, is that it seems that the degree of competition in Hall-Roeger model seems to be intensive than other model. However, these result are similar both of them show that the Iranian banking industry market is noncompetitive.
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Keywords
Banking Sector; Competition; Iran; Panzar-Rosse Model; Hall-Roeger Model
Publication information
Volume 1, Issue 3
Year of Publication: 2013
ISSN: 1857 - 8721
Publisher: EDNOTERA
How to cite
Tash, M. N. S. and Abdi, Y. (2013). Comparative Approach of Competitiveness of Iranian Banking Sector. Journal of Applied Economics and Business, Vol 1, No. 3, 32-41.