Testing for Competition in the Russian Banking Sector within Panzar-Rosse approach: theoretical and empirical framework
AbstractThis paper investigates the influence of both concentration and foreign banks expansion in Russian banking sector on the level of its competition. The estimation of competition is based on widely used non-structural methodology of Panzar-Rosse H-statistic (Rosse, Panzar, 1977; Panzar, Rosse, 1987) and draws upon a comprehensive panel data set of 525 Russian banks covering the period 2004q1–2009q4. From the one hand, the panel estimation outcome reveals a gradually increasing time trend for the H-statistic, thus suggesting an intensification of competition in the whole sector and among the large banks especially. From the other hand, the empirical evidence provided in this paper corroborates that foreign bank expansion strengthens competition and vice versa confirms the traditional view that concentration weakens competition
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Bibliographic InfoArticle provided by Publishing House "SINERGIA PRESS" in its journal Applied Econometrics.
Volume (Year): 20 (2010)
Issue (Month): 4 ()
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Web page: http://appliedeconometrics.cemi.rssi.ru/
non-structural methodology of Panzar-Rosse; competition; Russian banking sector; static and dynamic panel data analysis;
Find related papers by JEL classification:
- C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models &bull Diffusion Processes
- C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
- C53 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Forecasting and Prediction Models; Simulation Methods
- D43 - Microeconomics - - Market Structure and Pricing - - - Oligopoly and Other Forms of Market Imperfection
- G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
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