چکیده:
The Iranian banking sector has undergone huge and substantial reform in the last decade; privatization, establishment of private banks and development of modern technologies (IT). This paper investigates the competitive condition of the Iranian banking industry over the period 2005-2010 using the H-statistic proposed by Panzar and Rosse. The properties of this non-structural methodology make it an excellent framework for assessing the degree of competition in the banking industry. To calculate H statistics, a reduced form of revenue equation was estimated. The calculated H statistics for the whole sample period was 0.7101.The extent of H statistics and the result of wald test indicate that the structure of Iranian Banking sector is neither monopoly nor competition. Our findings were in favor of monopolistic competition.
خلاصه ماشینی:
The extent of H statistics and the result of wald test indicatethat the structure of Iranian Banking sector is neither monopoly nor competition.
Keywords: Competition, Iranian Banking Industry, Market Structure, Panzar-Rosse.
The Panzar-Rosse model uses data for individual banks, which tend to be available in sample quantities, allowing fairly precise estimations of competition (Bikker & Haaf, 2002).
The Panzar-Rosse (P-R) model is one of the non-structural methods to measuring competition in the banking industry.
Gelos and Roldos (2002) to banks in emerging markets including Argentina, Brazil, Chile, Czech Republic, Hungary, Mexico, Poland and Turkey, Nathan and Neave (1989) applied this technique to Canadian banks, Claessens and Laeven (2004) to banks of industrialised and developing countries, De Bandt and Davis (2000) for France, German, Italy, Perera et al.
Following Bikker and Haaf (2002), Claessens and Laeven (2004) and Shaffer (2004) are among many others in employing the Panzar and Rosse (1987) revenue test to banking.
Competitive Conditions Test Results for Iranian Banks for 2005-2010 (The dependent variable (TR) is the ratio of total revenues to the total assets) FLeamer Test & Hausman test F(90,18) 3.
0001 Conclusion In this paper, Applying structural model and the Panzar-Rosse method, we measured the extent of competition in Iranian banking, using n-firm concentration ratio and Herfinhal-Hirschman, Market concentration, as a proxy for market structure.
To assess the degree of competition in Iranian banking industry, a modern empirical analysis based on the non-structural method developed by Panzar and Rosse (1987) was conducted.
(2010), "Market structure and competitive conditions of banking industry in SA: The Panzar-Rosse approach" Actual Problems of Economics, January 1(103): 263–276.